August 19, 2020 - (Gold Market Wire) - The metals are sitting back this morning after two days of solid upside action - begging this question if we are backing and filling, or if we are starting a bigger sell-off. Of course the posture is bullish overall, but are uptrend lines are coming into the picture and need to be respected. First we bring up the chart of Gold.

Still above trend, and no immediate drop.

And now the Silver picture:

Indeed, a difficult morning, but so far we have to run with the uptrend as it is. We'd be remiss if we didn't mention that this European a.m.'s failure to follow through on yesterday's action is giving us some cause for concern. Heroic's do not a profitable trading book make, and while this is no freight train coming at us, we're inclined to lighten the length a bit and see if the trend holds up. We are looking at Silver's horizontal position at $27.39 to hold up. Its failure, intra-day, could threaten a bigger sell off when New York comes in.

A cautious, tentative tempo this morning.