Gold passed the first major test of 1850 on Thursday with a small bounce this morning. If this is the best Gold can do after yesterday’s attempt to break it down, its going to break down. The pattern is bad loaded with weakness and ready to fall. As we know, there is never a guarantee, but the right side is short for now.
Silver remains weak but nowhere near the weakness in Gold and is still in danger of following the yellow metal down through lows not seen for a while. Silver’s bounce this morning is weak, and the downtrend is clear, we remain short.
On the other hand, Platinum is strong trying for its eighth day in a row. The rally has traveled 100$ from the bottom. Look for platinum to stall at about 980 January futures. We expect a pullback and would add to our positions at 940 – 950.