urprise, gold and silver are selling off this morning. Actually no one should be surprised, we have written for the last couple of days that the best action for the metals would be consolidation. That is exactly the action we have seen for the past week.
Although December gold spiked up to 1546 last Tuesday, it has been churning between $1,500 and $1,540. This is exactly the type of trade we are looking for. The metals are building a higher low and a new base of support.
Our target of $1,600 gold and $18.00 silver have not changed. The trading action is bullish, and the rally should continue. Equities have found a bid this morning, bonds are under pressure which is keeping a cap on the metals. As we have watched for months another explosive move in gold is just around the corner.