Gold and Silver continue to churn in a range. The tighter the pattern trades the bigger the move that is expected. Although we are short and will stay there until the algorithms tell us differently, we know from experience a big move is brewing.
The impending move can be in either direction – a break to the downside will continue the current trend, a break to the upside would reverse the old trend and start a new one. The reason congestion is called the greatest time of uncertainty is evident if you have been watching the pattern for the past few weeks.
The levels remain the same with Gold 1700 – 1750 and Silver 24.5 – 25.5. Until we see a close above or below in these levels the torture of congestion will continue. The longer this exists, the bigger the move will be. This is when observation and not participation are the best trades. Sometimes, watching is better than trading.