Friday was an ugly day for themetals, with gold falling almost $30 and silver almost 60 cents. It was the old“throw the baby out with the bathwater,” as there was no place to hide. Thesellers started early and never took their foot off the gas.
The move caught us off guard andchanged the dynamics of the overall pattern in gold. It once looked like thebottoms were in but now the $1,240 level has been brought into play. We werebuyers and have taken our losses.
Observation is our trade now. Wewill stay neutral while looking for a new opportunity to buy but are in nohurry. When a pattern breaks so abruptly, the best course of action is to watchand wait for the next pattern to appear.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading