Greetings!,

For the second day in a row precious metals markets continue to be range bound and are being traded under tangible pressure. With gold breaking below $1700, which erased earlier gains, traders await the outcome of a Federal Open Market Committee meeting today. 

For the last two days traders have prodded and tested gold for support. On each occasion gold was able to maintain a stance above 1690 per ounce with 1687 being a critical support level.

Absent from the precious metals markets are the easier upside gains witnessed during recent rallies. It is my belief that we are still within a bull market, although we are currently in a corrective period.

Regardless of the long term bull, caution is certainly a prerequisite of trading precious metals markets right now. As we await the outcome of the FOMC meeting look for continued sideways trading activity.

As always, wishing you good trading,

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Proper Action

GOLD & SILVER  

Maintain current position

Long gold @ 1700 stop below low (1665) 

Long silver @  33.80  stop below low (32.50)

Caveat: On any signs of prolonged weakness or selling below 

1686 in gold look to lighten or cover positions and take a small loss

MARKET FORECAST

Gary S. Wagner

Gold & Silver: sideways to bearish sentiment best characterizes current trading activity in the precious metals markets. For the second day, both gold and silver continue to trade under pressure. At the same time lows in both markets have been tested and at least for the interim there has proven to be adequate support in the market. As of this writing gold is currently trading off approximately seven dollars at 1695 per ounce. Look for continued sideways activity to see if support holds and a base forms in this area.

Gold Chart

 SILVER Chart:

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