Gold and Silver lower on Trade News – By Todd Horwitz, Bubba Trading

 

Gold and Silver are lower this morning; many will look for a reason. There will be talk that the fear that drove prices higher has now been resolved. Overnight there was an agreement with China to meet in October.

We have written for days that metals should go into a consolidation pattern which is exactly what they are doing. Silver which has exploded higher should sell off and churn as it rebuilds strength for another move higher. Gold has been in consolidation for the past week with a couple of failed attempts to breakout to the upside.

The patterns in both are clear trade talks or no trade talks. Gold and Silver should continue to rise once this pattern resolves itself. All markets leave footprints which allow the patterns to develop. The metals are in a bull market and should continue higher trade talks have no bearing on what these markets do. If you try and trade the news you lose.

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.