Gold and silver track their current patterns

New York (Feb 14)  Interestingly enough, gold and silver continue to track their current patterns. Gold continues to hold the uptrend on track with a move to $1,600 in the April futures. Silver in a downtrend on its way to $17.50 and below in the March futures.

One thing we have learned about markets is they break into three different patterns, spending most of the time consolidating. Both gold and silver are in consolidation; however, they are developing trends within their consolidation ranges. Gold in an uptrend and silver in a downtrend inside their ranges.

Eventually the metals will break out to a longer-term trend, as they sit now – gold higher and silver lower. There are obviously no guarantees, but the patterns are clear. We will stay short silver in the March futures and long gold based on April futures. When trading, watching price action and direction gives you the highest probability of success.

KitcoNews

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