Gold meets Dolly Parton. The support level in gold combined with the consolidation pattern suggests gold goes higher and Silver goes lower. By Todd Horwitz, Bubba Trading

 


Here we go again, Gold after falling apart last week closing below 1500 on Friday but holding overall support has rallied big on Sunday night/Monday morning. Gold is back over 1500 trading about 12.00 higher based on the December futures. Is the new bottom in or is this a dead cat bounce?

It appears that both gold and silver have held key support levels. Was the drone bombing in Saudi Arabia the reason that the metals are higher today, or is it the simple fact that they held support? There is no absolute answer, it could be a combination of both.

Markets are simple when one has the discipline to leave their opinions at the door and look simply at the footprints that are being left but the money flow. As it stands now, we are long gold and short silver which is only based on the market price action.

The support level in gold combined with the consolidation pattern suggests gold goes higher and Silver goes lower.

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.