Gold did try to break out, but failed, along with so many other stocks and markets. It's just not ready to go, and you must cut your positions quickly on a failed breakout or pay the fine for being stubborn.
For now we are stuck between moving averages at $1,320 and $1,280. That nice $40 range can be traded if you are quick and a break either way should be the new trend.
The good news is the longer we hold this area, the stronger support it will be.
We've really been building out a long flat base since last June, when we hit $1,179 for the first time. This nice long base may not be sexy, but it should lead to a breakout higher one of these weeks.Until we do see a major breakout there is no real point in trading gold unless you have a short time frame and can be quick. That said, you've had a long time to accumulate physical gold and that still seems to be a good idea for now.
Silver (SLV) lost 1.79% and remains near crucial support at $19. We've been here at support a long time and it has held so far. Silver tried to break out early in the week but was quickly shot down. It's really hard to get excited about silver until we can clear $20.25, then $24, but the real trend change would be a move back above $28. It will take quite some more time.
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