Gold headed to flash crash lows

New York (Sept 29)  Gold continues to struggle, and the downtrend remains in place. With platinum and silver already taking out the flash crash lows of August 8-9, gold is a favorite to follow suit. Our downside target in gold is $1670, based on the December futures.

Gold prices can go lower than $1670, but that is only our overall target. The next major support levels to watch are $1,720, then $1,700 and $1,670, all based on December futures. There is no question this pattern can reverse before those events occur; however, the action is ugly and getting worse when there should be a rally.

When markets clearly should be going one way and they are not, that tells us the markets are aware and don’t care. We continue to see that kind of action in silver, no matter how bullish people are. Price never lies and the metals look weak. Platinum is the strongest as of now but holding on by its fingernails.

In all markets, price action determines what will happen in the next day, week, or month. Keep the two strategies separate. The worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.

Patience, discipline, and money management always win the day. Let the map of the markets show you the way.

Reuters