After the Friday’s jobs number Gold and Silver popped sharply higher, which makes this morning’s small sell off a natural reaction to the rally. The price action suggests that the new lows and support levels have risen to 1870 August Gold, 23.70 July Silver. We expect this minor sell off will hold those levels and continue their rally.
The lousy jobs number was a sign in trader’s minds that the FED will not taper supporting higher prices in Gold and Silver. We expect a run to the recent highs and beyond with the possibility of new all-time highs in Gold. We also know that there is no guarantee that we will see a rally that big and the possibility for a reversal is always in play.
You must remember that no matter the long-term view on metals in the near term anything can happen and markets can go in any direction. We are long Gold and Silver, expecting the rally to continue making higher highs and higher lows. Watch the key support levels; be prepared if something changes. If you always remember that no matter what we expect in the future the present can do anything. Follow the price action.
Patience, discipline, and money management always win the day.