Gold trying to breakout, silver sleeps

As we look at markets today, they are like a nightmare; conditions keep getting worse as the trade dries up. This is no surprise; it is a typical summer trade. Summers bring us a lack of volume, volatility and many pundits predicting tops in equities and bottoms in metals.

However, the facts are simple the trends remain the same, long equities and short metals. Gold came within pennies of reversing to the long side but did not quite get there. A higher close today would trigger a reversal; gold and silver are lower this morning.

We often remind you that this commentary has nothing to do with investors, we are holders of physical metals, but we trade either side of the futures. For now, we are short and will not reverse until our algorithms confirm a trend change.