Gold price bounces as expected

New York (May 22)  On Thursday, gold, silver and platinum were hit with some heavy selling and a reversal. They were all hit after rallying early and when the day was over, it was an ugly day. All three came down to support, but buyers are stepping in this morning.

Gold was hit the hardest and was in danger of setting up a reversal pattern. However, the underlying strength held the yellow metal, and the reversal turned out to be a pullback in an uptrend.

Silver and platinum, like gold, reversed on Thursday, held support and are moving back up this morning. Silver and platinum are in strong patterns, which should take them much higher. Silver should test the $19 level in the July futures and platinum $980-$1,000 in the July futures.

The metals are in an uptrend, and nothing has happened to change that pattern. Expectations are for the rally to continue across the board and test the recent highs. In uptrends, sell-offs are a part of the trading action. They are meant to be buying opportunities as the weak hands get shaken out.

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