The G20 meetings have concluded. There appears to be a truce between the U.S. and China. On the Sunday night open, all markets exploded higher, even gold and silver. Equities and grains appear to be the biggest benefactors so far.
February gold traded as high as $1,238 before selling off a little, which is consistent with our $1,240 resistance level, and silver made a double top at $14.51. The action is no surprise. We expect the metals to churn in the consolidation range before breaking out one way or the other.
Our overall expectations haven’t changed. We expect the breakout to be up but will be prepared to get out if prices break out to the downside. The most important take-away from the overnight and early morning action is simple — follow the footprints the markets leave with discipline, and you will be able to minimize risk and maximize profits.
By Todd ‘Bubba’ Horwitz
Contributing to kitco.com
Contact Bubba@bubbatrading.com
www.bubbatrading.com/
