Although this is being written very early in the morning Gold, Silver, and Platinum are lower once again this morning. It now appears they are going to test the recent lows, the failure to breakout could lead to heavy selling.
Of course, we are not predicting anything more than we expect the trade of metals to remain under pressure, Gold looks to test 1700, Silver 24.00 and Platinum 1150. Our biggest concern is the lack of overall interest in any market.
Volumes across all markets has dried up leaving the potential for big moves in either direction. The moves for Gold and Silver should be lower and could extend, however with this, this trade it will not take much of a rally to reverse.
Periods like these always create the toughest conditions for active traders for several reasons – the biggest being lack of activity. Dull and quiet markets leave the door open for quicker changes. Therefore, we choose to trade mechanically and leave our emotions and opinions out. After all, trading, investing and speculation are about money. It’s that simple.