What Happens To Gold And Silver Next? Look Out Below?

Sure looks like gold is setting up for another drop, does that happen tomorrow? Have no idea, have to wait and see, but gold is back again at the lower end of its current range, probing it.

Silver back to the lower end of the range it had broken out of. Is this the weakness from gold we are seeing?

Probabilities sure are pointing to another lower range break for gold.

Key number on gold is a break of 1152.50, that area can only be probed so many times on the downside before it breaks down. Watch that number tomorrow.

@ilikeikes

Yes, you are very right about me, I only care about price, price action. So far, after some very nice range breaks a few months back, silver and gold are losing steam and have continued to break down, especially since October where I jumped off, closed all positions down and booked profits.

I dont know what happens tomorrow. I dont profess to know the future nor do I care to try and make predictions about the future. I just follow price, manage risk and make money so long as the trend is accommodating, up or down.

2016 has NOT been an easy year for trend following. Lots of great looking trends that started early in the year have fizzled out, albeit, they are all in up trends but have given up major gains.

I will say this tho. Assets that make yearly highs, are not a flash in the pan. They do come back to where they were at and continue higher. Sometimes, its not all that sexy how they do it, sometimes the trend is not as beautiful as the latin american women I love. I think the price action is being very clear that gold and silver, for now, will not be very beautiful, clean easy trends, for whatever reason and could revert back to where they were.

As a trader, I personally am fine with this happening. As gold and silver have petered out, they are not something I look at closely anymore. I mean why? My objective is to find the trends, whats the strongest and go there and trade it. If its starting to make yearly highs and at the beginning of the move, I guarantee you , I Am there already.

For now, I see silver and gold losing steam, still in their up trends. I will flip to downtrend when they finally give way again to their yearly lows, when, just as I said when prices turned to their uptrend, that the move to yearly highs was your complete confirmation, without a doubt of where price was heading.

Sometimes markets move in wild, crazy moves. Look at oil as an example. In February of last year, we were talking bona fide down trend. In a matter of months, it built a base, reversed, and here we are BACK at an up trend. Sometimes, these trends move FAST and whip around.

In conclusion, personally, I dont think silver and gold have given all they have to give. However, that is not to be decided by me, but for the market to decide and I always abide by what the market dictates. Should the market grind lower here on silver and gold and push that price into yearly lows, thats fine with me. However, I would not be surprised if things change after some time.

If you buy gold at $1100 an ounce how much does it have to go up to actually make money on it? Consider unless you are a gold dealer you will be selling it to somebody who is going to resell it.

I am VERY surprised by all the green on my screen today...95% of my miners are green, in advance of this rate hike. I was expecting moderate losses the last 3 days heading into this. Perhaps the sellers are reaching exhaustion. The amounts of money to be made on margin can be too lucrative for some to not play, and, they do reach a point of giving in, and, starting a cycle again. Who wins, who loses, in the next time frame, unknown right now.

I would like to see $350/oz. again for about 6 months, followed by a steady rise to $2000 over the next 6 months, LOL.

The Fed interest rate hike knocked gold down by over 1% today. Their announced intentions look like a set-up to knock another 3-4% out of the price in the next year. CD's may become a decent return investment again.

Unfortunately for gold, its direction is linked to interest rates/yields, and we can see where they are headed. The only real demand for the yellow metal is investment and jewelry. Chinese and Indian demand has been down, not helping gold prices either. Pretty much all the gold that has ever been mined on this planet still exists in some form, its not going away, so its not really rare anymore. It is pretty to look at though. Nobody knows where gold will bottom out, all we have is "worthless predictions".