The past few sessions have seen gold rally to the lower end of the previous tight range and swiftly began to sell off.
The real danger for gold is if the last low of around $1850 per ounce does not hold as the next area of support comes in at $1788 per ounce.
All eyes should be on the $1850 level.
Silver on the other hand did not get anywhere close to yesterday's low. The close today came in right around the previous support level.
My only concern is that these kind of movements often come in three distinct moves and we have only had two so far.
The miners, GDX, are in a bit of trouble here. After the last drastic drop the 100 day moving average ultimately was the base from which the miners rallied. The rally stopped dead cold at the 18 day moving average.
For two days in a row GDX closed below the 100 day moving average, the Bears are certainly targeting the lower Bollinger Band at $36.78 per share.
Caution remains the word of the day for those seeking to go long.
Peace out and stack on!