Massive reversal day for the metals

The precious metals both opened significantly higher, and soared in mid-morning, but the gains failed...fast. Gold slipped from gains of almost $40, and closed -$10. Silver was up almost $1, and closed -10 cents or so. Near term trend looks.... very unstable.


SLV'60min

GLD'60min

Summary

With Bernanke speaking this morning, and the FOMC minutes not pleasing the market, we sure did see some major action in the precious metals market today.

There will no doubt be a huge number of annoyed traders, not least those trading without pretty tight stops. Those metal bears who exited at the open will be understandably dismayed to have seen the metals collapse across the day.
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Near term trend looks very unstable, and Gold is now on the edge of taking out the recent double bottom. If GLD <130, a quick drop to 120 looks viable...even within a single day.