The short squeeze in metalscontinues and it appears the shorts are starting to panic. The rally, as goodas it looks, is not very healthy and before it ends, gold could see $1,325 andsilver could see $17.20. That's the funny thing about short covering rallies;they look so good right before they collapse.
Helping the rally has been thepressure in the cryptocurrencies, especially the Bitcoin, which has been underpressure. Now, governments around the globe are trying to set regulations onthe digital space. South Korea is talking about banning the cryptocurrencies,but I don't know how. However, that has brought a little fear to the space andbrought money back to the metals.
We remain long-term bullish andshort-term bearish the metals. As investors, we will hold; as traders, we willtry and capitalize on the expected down move. Our expectations are a test ofthe recent lows as soon as the shorts are squeezed out.
Contributing tokitco.com
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