Gold, silver on support.

After Thursday's ugly sell-off in the metals, both gold and silver are sitting on support. This morning, both are slightly lower. The big difference between the two is gold is still in an uptrend while silver is in a downtrend.

We would expect a bounce in both followed by a continued rally in gold and a failure in silver. The patterns are clear and for now the spread between gold and silver should widen. We expect gold to test the recent highs and silver to test the $17 level based on...