There is an adage on Wall Street and in trading communities: Buy the rumor, Sell the news. This is exactly what happened on Wednesday in the metals, especially Gold. Platinum and Silver were also affected but nowhere near the damage done in Gold.
Every trading day brings signs of what may happen next, yesterday we mentioned Gold could reach new highs but also said that there were some potential roadblocks. On Wednesday we saw the first, Gold Reached a major resistance level of 1966. The failure was deep and ugly however only lasted long enough to test support and hold.
To be clear, the action seen on Wednesday was normal and did no damage to the technical pattern of Gold. 1966 February Futures was known as a double top which is natural in trading sequences. However double tops work best in downtrends which is not the case for Gold. The uptrend is still in play, 1900-1910 support should hold as we expect another attempt to take out the recent highs.
Silver and Platinum were not under the same pressure as Gold. All three remain in strong up trends and we are long. We remind you of two things, be prepared not surprised and trade the news you lose.