On Wednesday, both gold and silver reached levels of resistance and failed, as you might expect. The early-morning rallies in both were very powerful and had the appearance as if the metals were going to break out even further to the upside. However, the sellers came in fast and furious, taking both gold and silver from positive territory to negative.
Gold is ready to break out and should test $1,800 in the August futures and higher, with all-time new highs in sight. Silver failed to break out to the upside and is still in a consolidation pattern with the bias to the upside. This morning, both are under some pressure; however, both are also at support.
Platinum remains ugly and is breaking to the downside. The violation of major support and the next target in platinum is about $760 in the October futures. A small rally in platinum over the next couple of days would be no surprise; however, $840 should be resistance to any rally.
The patterns are all clear. Gold and silver in our opinion should continue to rise, and sell-offs should be used as an opportunity to buy. Platinum is headed lower, and all rallies should be used as opportunities to sell. These patterns can change because we know markets don’t announce themselves, but for now, we are long gold and silver and short platinum.
Saturday, June 27, at noon EDT Micro Mini Portfolio Management Webinar: I will be hosting a webinar on our Mini Micro Futures Portfolio Management. This program has been a huge success, and you are invited to join the presentation at Saturday, June 27, at noon EDT. This is a can’t-miss event and is free to attend.