Gold Tries to Rally but Stalls. The action in Gold and Silver is bullish and should lead to much higher prices. By Todd Horwitz, Bubba Trading.

 

Thursday, gold was under pressure but did make an attempt at a rally. Gold did get positive for a few minutes before closely marginally lower for the day. The action is exactly what we called for, which should lead a period of consolidation.

The action in Gold and Silver is bullish and should lead to much higher prices although a period of consolidation would make the pattern more bullish. The straight rally from Wednesday needs to resolve itself by pulling back.

Gold should see a sell off to support at 1500 before resuming the rally. We are expecting a run to the 1600 level and possibly higher. Silver should pullback to 1650 before taking a run at 18. We expect the next move in Silver to be bigger than the rally in Gold to reduce the ration between the two.

Todd Horwitz
Chief Strategist
BubbaTrading.com

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.