The selling pressure became intense for a short period of time. The metals closed lower on Monday, near their lows of the day.
This morning gold and silver are mixed near the unchanged level but should be headed lower. The key resistance levels remain in place at $1,520 gold and $17.80 silver. The pattern points lower. The next support for gold is $1,480 and $17.20 for Silver.
For the next two days, markets should be quiet, which can lead to bigger price movement in either direction. Tonight starts Yom Kippur which runs through tomorrow. Expect this afternoon and tomorrow to be slow trading, which can lead to exaggerated moves. Besides the Yom Kippur holiday, the China trade news Thursday could lead to crazy moves, the levels of support and resistance are solid.
By Todd ‘Bubba’ Horwitz