Gold Likely Going Lower

By Peter Aan.

Here’s my take on the metals as we begin to close out a very interesting week in the financial markets.

Gold’s close on Wednesday turned the trend down in my opinion, but Thursday closed about unchanged. The rally that started last night may be beginning to fizzle this morning. I still look for lower prices

Silver rallied sharply on Thursday after Wednesday’s freefall, but Thursday’s action was completely contained within Wednesday’s. This morning’s action is subdued. Lower prices expected, although a close above Wednesday’s high of 14.745 (December contract) would cause me to reconsider.

Platinum rallied Thursday, but I am not completely convinced that we are not working lower. If we close above Thursday’s high of 1009.10 (October), I will be calling for a test and penetration of the recent high of 1038.50.

After making new lows on Wednesday, Palladium rallied solidly higher. This market looks like it may be starting a correction to the upside. A further confirmation would be a close above Thursday’s high of 568.85 (December). However, with the momentum of the recent fall, this rally could easily falter.

Peter Aan joined Dillon Gage in 1983, and is currently a metals trader for our metals division. He is the author of numerous articles for Futures magazine and Stocks and Commodities magazine. He is the author of The Relative Strength Index: A Comprehensive Research Report and a co-author of Trading Tactics: A Livestock Futures Anthology, published by the Chicago Mercantile Exchange.