Here we go again, Gold is attempting to breakout of the first level of resistance, however that does not change the overall bearish pattern. Overnight, Gold traded at 1929 December futures and has now pulled back to 1920.
Silver and Platinum had no such attempt this morning, still wallowing around in consolidation. Both remain in downtrends and should continue lower after this period ends. It appears that all metals are getting ready for the next move down.
The best indicator to use is the phases of the markets which breaks the stock or commodity into three phases, congestion, breakout and blowoff. This pattern occurs in all markets, all time frames and is the single greatest indicator helping traders and investors to making the correct trading decisions.
All metals remain in downtrends and we are short them all. They will breakout of this pattern, either up or down. Based on our algorithm we assume the next move is down, continuing the long term pattern.