Gold and silver are at a crossroads right now with gold prices testing the upper level of a resistance zone at
$1180 - $1210 as we move out of a timing zone for a likely reversal in this market. This could be an ideal spot to sell short, but there are still some short-term indicators that are bullish and suggest the possibility of higher prices. What we can do here is sell short with a very close stop loss at $1210. If gold closes above that price over the next several days there is a good chance prices will go higher (possibly to $1250) and we may have to wait until mid-December for another opportunity to sell short (assuming the precious metals do not "break out"). I still think it is possible for gold to correct down to the $1000 level (or possibly lower) over the next several months. Directional momentum remains strongly bearish in both gold and silver so there is a good chance prices will move lower now.
If they don't, we have a tight stop loss very close to our entry point to minimize any loss. Because this market is a little tricky to call at the moment, I am only trading gold and not silver as silver prices move faster than gold and can incur large losses in a volatile trading environment. Entering a short position in gold today.