So, did the fat lady sing in gold and silver on Tuesday?

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(Kitco News) – Gold and silver took big losses on Tuesday, and at the end of New York, trading saw gold drop more than $ 115, based on Comex futures contracts. ‘October. Meanwhile, the money was down over $ 4.25. Gold and silver fell in part due to the overnight announcement that Russia has approved a Covid-19 vaccine. However, global health experts are very skeptical and warn that the Russian vaccine is premature because it has not gone through the full trials that the United States and other countries need for approval. Traders are fickle and come Wednesday morning, Russian vaccine news could be completely discredited, or at least ignored.
Also, this week it looks like there is some slightly better news on the general Covid-19 front. The daily rate of infection in the United States is declining slightly and it is now said that the human immune system may be better than expected at developing its own resistance to the virus.
The main question for gold and silver traders on Tuesday night is: “Was today’s price action a signal that both markets have reached major highs?” No one knows the answer to this key question, but there are powerful technical tools that a trader can use to try to determine whether and when the metals have broken out or not.
This 35-year-old market watcher believes the current big drops in gold and silver prices are, so far, just big downward corrections in still strong upward price trends over the years. graphics. The price trend is the most powerful technical trading tool on the planet. The most successful traders will tell you. “The Trend is Your Friend” is a proven trading adage that profitable traders have adopted for over 100 years.
Here are the price levels which are the latest “reaction lows” in the short term (daily charts) and long term (weekly or monthly charts) trends. that in the event of a downward violation, the respective upward price trends would be canceled in the gold and silver futures markets – and most importantly be a solid technical index that short and / or long term market highs are in place.
OR Short term: $ 1,805
Long term: $ 1,669

MONEY

Short term: $ 22.46
Long term: $ 17.00

It is very important for a trader and an investor to look at the long term price outlook. A day does not make or break a long term bull or bear market.
Trading for the remainder of this week will be extremely critical for the gold and silver markets. The closing of markets on Friday will be very revealing. If gold and silver futures prices close at or near their weekly lows on Friday, then this would be a significant early hint that these markets have set at least short term highs. If markets can rally over the next few days and end the week well away from their weekly lows, the bulls may soon resume trading.
It is the opinion of this market watcher that the fat lady has yet to sing in the great bull races of the gold and silver markets.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has done everything possible to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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