Are we having fun yet? Gold continues to Churn

New York (Sept 18)  The torture chamber remains open; gold, silver and platinum continue to consolidate, looking for a spot to breakout. We know that they will have to eventually break out in one direction or the other, as it stands now, we assume that move to be lower.

For the past six weeks and from a technical standpoint, gold continues to make lower highs, giving more indication that the breakout will be to the downside.

Silver and platinum are in the same formation with a couple of exceptions. Silver'ss range is getting tighter without giving a great indication of which way they will breakout. Platinum's price action has been a little wilder in the trade, but it has not violated the top or bottom of the range.

As we opened with, we are short and we know that all of these markets will eventually break out in a direction. We don’t know with 100% certainty which way. Because our proprietary algorithm is short, we will lean to the short side until proven otherwise.

KitcoNews