Gold And Silver Continue To Struggle

New York (May 30)  The trading action in the metals continues to show that traders are trying to push the metals lower and investors are apathetic. As we often talk about, the pain and torment of the consolidation pattern occurs when neither the bulls nor the bears can take charge.

There are signs in gold and silver that the bears still hold a slight advantage, which is consistent with our call of gold going to $1,240. Like all markets in congestion, rallies are met with sellers and sell-offs are met with buyers. In the metals, the bears still have the edge, as witnessed by the lower highs that are made with every rally.

Although silver looks much closer to bottoming than gold, both don’t look good and the volume always appears when sellers show up to sell the rallies. The next big move should be lower, which is consistent with the current price action.

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