Last week Gold and Silver tried to rally and reverse trend, they failed. This morning, after churning around unchanged until around midnight, suddenly the sellers showed up until about 3:30 am EST the selling was moderate, at 3:30 the sellers were out in force dropping Gold about 20.00 and Silver about .50.
For the last hour or two both Gold and Silver have retraced about half of their losses but look bad doing so. Our expectations have not changed, we are in a downtrend and we expect a lot more selling to show up. Obviously, we cannot predict the future nor do we attempt to pick tops or bottoms. From this point we expect to see the lows of this pattern and possibly lower.
We are still long Platinum which is also under pressure this morning, the difference between Gold, Silver and Platinum is their prevailing trends. For now, the selloff in Platinum is an opportunity to buy. There are basically three choices from here for the metals, the current trends continue, they can reverse or a combination of both.
The best way to play it until there is a change is, sell Gold and Silver on rallies and buy Platinum on dips. Always stay with the path of least resistance and find yourself on the highest probability side.