Gold price huffs and puffs but can’t blow through resistance

New York (Dec 20)  The metals continue to fail to get through the key resistance levels. Like the big bad wolf, the metals continue to huff and puff but can’t blow down the resistance wall. Eventually gold and silver will break out to the upside, but for now it looks weak.

For weeks, gold and silver have tried to break out to the upside, but each time they have failed. The failure is a bearish sign and they should be headed lower. We all know that markets follow footprints and move in both directions with a gradual bias to the upside over time.

Unfortunately for the gold bulls, this still isn’t the right time for the metals to break out to the upside. With each day of failure, the odds increase for the possibility of a much bigger sell-off. Until gold can close over $1,490 in the February futures and silver above $17.30 in the March futures, we will stay short.

KitcoNews