On Wednesday Gold and Silver were struggling to stay above water. At 2:00 EST they both rallied hard taking Gold to 1754 and Silver to 26.74. The rally continued overnight until about 2:00 AM EST taking them back down the levels that we will call the moment of truth.
We remain short both Gold and Silver which will not change until at least tomorrow Friday, March 19th. For that to occur Gold and Silver will have to go through those highs and hold which possibly create a reversal. However, this morning’s weakness looks like the rally has faded and the downtrend should continue.
Obviously, we don’t know what the rest of the day will bring. As always, we will be watching the price action and run our program after the close. The only difference in our opinion from the last few days, we will not be adding to shorts here until the move down shows continuation.
The moment of truth will be decided by the price action; we will stay short and observe but will be making no decisions or changes today. Discipline, Patience and observation lead to better trades. Today we observe.