Precious Metals Continue to Trade In A Tight Range

Today the trading in GOLD remained in the very tight range I have been discussing for the past week.

On a technical basis, (and by technical I mean my highly trained eyeballs) GOLD did throw a "sell signal" so watch today's low $1962.50 per ounce, if it is taken out tomorrow we could see gold revist the area of the previous low at $1908.40 per ounce.

We shall see what tomorrow brings BUT CAUTION is the word of the day until the market breaks this tightening range with a clear direction.

Silver is a little different than GOLD.

Did you see what silver did today?

It broke the range and took out the previous HIGH, not by much but enough to put in a new high by 4 cents!

Okay, 4 cents is not a HUGE breakout but silver did accomplish a new high outside of the RANGE.

Below is a chart of Pan American Silver that also broke the previous high.

So is silver ready to roll?

Perhaps, I still would like to see a "gap" up in some of the silver miners to confirm the move.

Speaking of the miners, GDX had a good day today BUT . . .

remains within the range. A nice "gap" to the upside might be a signal that a rally has begun. GDX did close above the 18 day moving average and the stochastic is heading up both positive signs.

On the negative side is that "sell signal" in GOLD and the miners did sell off in the afternoon.

Caution remains the word of the day.

I do like the chart in SILVER but not enough to bet the farm on it.

Peace out and stack on!