After Wednesday’s big sell off in the metals, Thursday they tried to rally and are now failing as of this morning, threatening to take out Wednesday’s low. There is no doubt that the trend is confirmed lower and now we could see significantly lower prices.

As you know, we do not predict markets but make all decisions on price with price action. The recent action in gold and silver has become bearish, bringing into play some lows we have not seen for a while. For December gold, if 1920 does not hold support, 1850 comes into play. September silver is a key level 26.5 is a must hold level or 25 comes in the play.

Platinum has joined the ugly party and is inches away from reversing, however until it does, we will stay long uncomfortably. We are short, gold, silver and looking for the downtrend to continue. We know that markets don’t announce themselves and we will be prepared to reverse, but can’t really make the case with the current price action.

Todd Horwitz Chief Strategist
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