Gold and silver seeing another small rally

Markets continue to be a challenging trade. Gold and silver are slightly higher this morning, but the rally will probably fail again. This is the pattern they are in, which will eventually change.

There is no doubt that someday they will rally, make new highs and be much higher than they are, but those guessing when that will be are playing the fool’s game. All markets go through the same phases and price action, which leads them up and down. Currently, the patterns suggest they are going to continue lower.

Today there is the CPI report which could be a catalyst to reverse the trend; however, we doubt that is the case. Market efficiency tells us that the sellers are still in full control. We remain short but recognize that the pattern will change.