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

Meh.. only if you're day trading Cascade... otherwise long term things are still looking pretty good...

Rand gold is looking really good right now... I like silver... all in all.. I think it's a good time to be holding PM's

Overall, ugly ugly price action for gold and silver off the yearly highs.

Reversals usually mean that, we are going to see price reverse and seeing how the selling was steady right into the close of the PM markets, more down tomorrow should not be a shocker.

That said, some context is necessary: its all about time frames. If you been holding silver and gold since their big moves started earlier on shorter time frames before the beginning of the year, you are still sitting on nice profits.

If you been holding miners, silver, gold since early Feb.. you still are in good shape.

If you played the breakout solely, you had to be very nimble but again, if you been watching price action, you would be on the watch for the reversal and to jump off.

The other thing is- notice on gold, we were up what, 7 days in a row, coming INTO the break out at yearly highs? It should be no surprise that it was weak and fizzled out today.

Sometimes, a breakout can thunder its way through a yearly high/yearly low, even after being up say 6 days. HOWEVER, the duration, or how long it carries past that break out point becomes very short lived.

Ideally, a nice clean break out happens within a 1-2 days of the point where it triggers. That allows momentum to carry price past the break out/break down and lets it expand, lessening the chance for a reversal.

That is something we havent really quite seen in gold and silver. Most moves thus far have been gap ups into the break out or continued buying, day after day, into the break out year.

I would suspect, based on experience, that during these summer months we dont see any long lasting break outs, this time of the year not much happens with most of the market out. There will be some assets that will continue to in a stealth mode grind higher, others will drop but most of the time, from here till September I wouldnt pin much on major moves in gold and silver. Thats not to say something could happen but again, I would lean on probabilities being high we just see more of this range bound trade.

That in itself is not a bad thing. Gold, silver are still in UP TRENDS. The more they keep probing higher, pricking and pricking the upper lines, the higher the chance that this pattern we are seeing now gets broken. Remember too that again, there is TONS of overhead resistance, a lot of overhead supply.

Next week could be very interesting with possible Brexit vote.

How's trading been the last couple days yup, does Brexit have you sitting on your keyboard

Brexit's playing out with pms. At first when the polls closed and the few precincts that reported were leaning stay pm's started going down. Now the leave camp looks on top and pm's are up. This is fun to watch and correlate

@Cascade,

Watching the same thing. It looks like price is leveling off as vote narrowing again. If remain pulls ahead, do you expect Gold to drop and the pound to rise?

Yeah and I get what you're saying yup but this can't be coincidence is all I'm saying

Just two things...

1- overnight futures in this case really are just that, if you are working contracts tonight then whats going on matters. if you dont have anything in the futures market then whats happening really means nothing

2- do not be surprised if when you wake up tomorrow morning, the losses have all been absorbed and silver and gold are back to being lower or flat. What matters to us in the US is what happens when our cash markets open up.