The metals are in the middle of a major bull-bear debate,as witnessed by the last few trading days. After breaking out on Jan. 2 andmaking recent highs on Jan. 4, metals have started to move sideways to lower.The pattern is typical of a market topping, and this should be the top in goldand silver for now.
Volume also peaked on Jan. 4, giving all the indicationsthat the metals were ready to take a breather. They haven't gone straight downas the bulls and bears battle it out, but it's obvious the metals markets areweakening, and the next big move is down.
Unless gold can find enough energy to rally and close above$1,330, expectations are for a test of the lows. The process should take goldto $1,300, $1,280 and eventually down to $1,240, where we will be waiting withopen arms to start buying again. For now, we sell rallies
Contributing tokitco.com
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