Gold and silver trading lower

New York (Jan 24)  The metals action is in an interesting position; gold has rallied while silver continues to sell off. Thursday saw gold rise to the top of the range, and the metal is selling off a little this morning. Silver is trending lower and is slightly lower this morning but close enough to unchanged that it could be on either side by the time you read this.

As we look at the metals markets for now, they are like the tale of two cities-- gold rising and silver falling. The pressure on silver is interesting based on what gold has been doing. The ratio between gold and silver continues to widen, which in the long run should be bullish for silver.

For now, we are long gold, short silver and waiting to see how March silver reacts at $17.50. Gold is in a trading range between $1,545 and $1,575. The metals are looking to break out in one direction or the other. We look for gold to go higher, which could drag silver higher with it.

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