There is no surprise that gold has seen a small reversal this morning. After trading 1661 gold has rallied to 1689. We are sellers of this rally if it reaches 1700. The price action remains awful and there is no reason to expect the trend to change here.
On the other hand, silver looks very good and looks poised for a nice rally. The key to watch in silver is the action around 20.00. Silver could fail from that area however the trend is higher, and we expect the 20.00 level to be taken out. Here the trend is higher.
You must remember that markets are inanimate objects that move off price action created by order flow. As we watch gold and silver, they appear to be going in opposite directions which takes away the correlation. Eventually they will go in the same direction, just not today.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper knowing that we can trade either side without emotions.
In all markets price action determines what will happen in the next day, week, or months. Keep the two strategies separate, the worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.