Gold and silver are acting weak again, with gold closing Friday’s session below $1,210. That’s not an official sell signal, but it is a bearish sign.
Still, all metals are deeply oversold and subject to a bounce. It will be the character of that bounce that will determine our next move. If strong enough, we may still see a cycle high in December. If not, then the metals are most likely heading to new lows in early 2017.
For now, we’re going to remain patient, and see what the bounce brings. If new lows are in the cards for next year, they will probably be below $1,000 in gold and $13.00 in silver.
And … we will play to that potential downside for all the profits it can offer.
I know it’s shocking – the thought of gold below $1,000 – but we have to listen to what the market is telling us: It may not yet be prime time for the precious metals …
And that the capital flows into the dollar are simply too strong for now.
Speaking of the dollar, it’s at better than decade old highs, and the euro continues to sink. Still, the dollar is overbought and the euro oversold, so we should see, as noted above, a bounce in the precious metals.
Hold all positions and related stops and stay turned …
Best wishes,
Larry
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