We are seeing the first unmistakable signs that the China stock-market crash will not be contained only to China. The silver break below $15 is pretty representative of what’s going on elsewhere.
Tuesday's break of support, which had held for 9 months in silver, is quite significant. If price is unable to regain footing above $15.50 in a relatively short period of time, it could mean that silver is on it ways to losing its ‘teenager status’ for the first time since 2009.
While I am less interested in silver, I believe that we are very close to a tremendous buying opportunity in gold. Both seasonality and market participant positioning are become very constructive as gold toys with multi-month support in the $1130-$1150 area.
We are at the most significant seasonal low of the year in gold just as speculative futures positioning is entering a ‘buy zone’. We will continue stalking the next big trade in gold and update readers in real-time over at the CHAT.CEO.CA ‘Trading Room’.
Via Energy and Gold.com