As the song says, here we go again. Gold, Silver and Platinum are close to the ultimate decision on whether to reverse trend or break to the downside. Since last Monday’s 80.00 drop in Gold all that we have been watching is consolidation. Silver and Platinum are basically in the same pattern.
The overnight action in Gold has been active, failing to take out 1900 on the upside. On the recent rally volume has continued to slow telling us the buyers are done. We do not predict markets but based on the positioning of the charts, the longer-term trend we expect a break to the downside.
Silver and Platinum are in similar patterns and should lead or follow Gold lower. As always, we will be prepared to reverse, accept defeat on this trade and reverse however at this time its fairly obvious that the metals have a greater probability to break down.
In the business of trading, accepting loses is more important than the wins. This business is all about managing risk without emotions. Good trades always take care of themselves. For now, we are short and will add at resistance levels.