The metals are in a consolidation pattern which is known as the greatest time of uncertainty. Consolidation is one of the phases that markets trade and always precedes the next big move. In Gold and Silver, we expect the next move to be lower.
As we wrote on Monday, Gold and Silver are in downtrends. The attempt to recover from last Friday’s collapse has been weak and without conviction. This is a natural part of a trend change and should lead to a much bigger sell off. Our first targets are April Gold 1820 and then 1800, March Silver 24.5 and then 23.
We remain long Platinum, short Gold and Silver. Platinum is also consolidating with upside targets for April are 1100 and then 1120. Remember, markets can reverse trend at any time. We are only trading a probability model which has a 66% edge.
There are no guarantees in trading or investing, but if you continue to play the highest probability with money management you can find success. If you are stubborn and fighting the trend, you will lose. Trading is strictly a probability-based model without opinions or emotion. Trade the news you lose.