An Ugly Day For Precious Metals
(Kitco News)- Tuesday was an ugly day in themetals, especially for gold. Silver had its troubles but is holding up muchbetter from a technical perspective. Gold sold off hard, breaking down into ablow-off formation, while silver just hovered around support.
For gold bulls, Tuesday's tradeshould turn out to be bullish with the blow-off pattern selling on heavyvolume. Gold is very close to our $1,280 target, although $1,260 could comeinto play. Once $1,280 shows, we will be ready to start buying when supportholds.
Most markets go farther in eachdirection than we expect. Another big selloff in gold could take it below $1,280.If that happens, we will turn to a shorter time frame on the charts looking forthe shorter time frame to hold. We have turned buyers at the right levels andthe right conditions. We will look to buy at $1,280 as long as the short termchart confirms, once that level has been met
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