Gold Price Is Back Or Dead-Cat Bounce

New York (Dec 14)  On Wednesday, the Fed did the usual -- nothing and no surprise -- which helped push gold up $12. The rally continues this morning. Gold has a high of $1,261. Silver rallied 40 cents and the party was on and is continuing this morning. Are the metals back in rally mode or is this a dead-cat bounce and a selling opportunity?

There is no way to know with 100% certainty but based on the previous footprint, we would consider this a dead-cat bounce for now and look to be sellers around $1,270 in gold and $16.30 in silver. The metals have been under so much pressure that a bounce was coming along with a short squeeze.

Bitcoin has been under a little pressure on the new CBOE contract and volume has dried up a little, indicating that some of the money that left the metals came back. However, gold and silver have work to do before we are believers in this rally. Observe with patience and let the charts do the talking.

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