Equity markets have started to breakout to the upside with the exuberance of President Trump being released from the hospital on Monday, meanwhile the metals remain in a downtrend. Though Gold, Silver and Platinum also reversed from Monday’s lows to rally, we remain short the metals and will not be reversing today.
The story on Monday’s rally runs a little deeper than just a normal rally, the pressure on Bonds and the Dollar was enough to help the metals rally. With a FED announcement on rates Wednesday it the appears that markets are looking for some dramatic action from the clueless gang at the FED. Although we could speculate, we will stay the course of the trend and general price action.
This morning Gold, Silver and Platinum are under a little pressure. They all should continue the downtrend heading back to their support levels. Levels to watch in December Gold 1875 -1850, January Platinum 875 -850, and December Silver 24.00 -23.5. Obviously, this can change any day, for now we assume lower.
Todd Horwitz Chief Strategist BubbaTrading.com
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