Gold value at key level while silver remains weak

New York (Aug 16)  Those hazy, lazy days of summer influence markets as well. While gold is attempting to reverse, silver remains weak. What we are seeing is that all markets are basically in a coma; equities are creeping to new highs while precious metals remain weak.

Gold had a nice finish last week, but as we can see this morning, the critical level of $1,785 December Gold is being rejected. That does not mean there can’t or won’t be a rally and a reversal. However, until proven by our algorithms reversing, we will stay short.

Silver is weak and has now experienced its sixth consecutive down week and ninth in the last 11. The recent move has taken silver from $29 down to $23, about 25%. There is no reason to expect that pattern to change anytime soon, we know it will, but trend trading is about what is happening now.

Unfortunately, the dull market action and lack of volume and volatility will keep the pressure on the metals. Patience, discipline, and money management always win the day. Let the map of the markets show you the way.

KitcoNews