28 September 2011

Gold Daily and Silver Weekly Charts

The metals reversed lower today as fresh selling hit the markets along with selling in the equities.

Jitters about the German vote and European debt situation were blamed.

See today's stock charts posting for commentary.

My view of the metals action is skeptical if not downright cynical.  I assumed we would have a down day in the metals to knock out any brave souls whose call options went out in the money yesterday, and found themselves holding fresh futures contracts today.

But the market is what it is, and we need to wait for the downtrend to break. It is drawn on the gold chart in blue.