With goldbugs calling for gold to double, we got bearish again when it reached our upside target at 1870.60 on November 10 [see: CPI: Out of Control.]
Gold is getting a big boost from the inflation data, and has now reached the purple neckline at 1870.60. I would revert to short with tight stops right here.
We didn’t give silver the hook until Nov 12 [see: Gold – Still a Good Inflation Hedge?] when it tagged our 200-DMA target. Neither metal has fallen much since then. But, the fact that they haven’t broken out in the midst of an inflation scare speaks volumes.
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