Gold and silver and platinum struggle in early trading

London (Sept 8)  This morning gold, silver and platinum was trying to rally. All three are at support levels and a rally is expected. The overall pattern remains bearish and should break to the downside once the consolidation pattern resolve itself. Consolidation itself is one of the most challenging patterns to trade and always resolves into the next trend.

The metals do not look good overall and we expect a much bigger selloff based on our algorithms. However, we also understand that markets can change, reverse and going opposite directions of our original positions. Until the trend changes, we will stay short across the board.

The price action in gold, silver and platinum looks weak which coincides with our positions. All three are bouncing from support. Although gold is already returned to unchanged and is trading on both sides indicating its headed lower.

Silver and platinum are little stronger than gold, however, they are all in the same pattern and likely to head the same way which for now, we believe is lower. We remain you do not confuse a trade with an investment, we are holding our physical without worry. In other words, in paper gold or futures. we are short is traders but will always remain long as investors.

By 08:15am EST spot gold ws down $8 to $1,916, while spot silver slid more than 1% to $26.46.

Reuters