There is no interest in the metals as they churn in consolidation on their road to nowhere. Another day off the calendar, another day the metals did nothing. This is the pattern that is lulling everyone to sleep and eventually metals will break out — either up or down.
On Tuesday, gold tested the lower level of support and immediately bounced back, indicating the higher low is holding. The pattern that the metals are in is very encouraging but torturous at the same time.
All signs point to the lows being in, which doesn’t mean that gold will rally right away. The most encouraging sign has been gold’s ability to hold the higher lows. The longer we suffer through this consolidation, the better the next rally will be. The best trade here is the one of patience and observation.
By Todd ‘Bubba’ Horwitz
Contributing to kitco.com