A breakdown in precious metals

Gold and silver have both broken key support levels today. The gold ETF (GLD) is down over 4%, breaking $165 support. Options trader might want to consider a 165/155 put debit spread as $155 is the next support level (and $145 below that).

Silver is suffering even more. The silver ETF (SLV) gapped below $32.50 support, falling over 9% as of this writing. Next support is $30 followed by $28, $26, and $24. You can play this one the same way as the GLD. I’m advocating option spread positions to mitigate the effect of heightened volatility.

The daily charts of the GLD and SLV are shown below.

Tags: Precious metals, GLD, SLV, gold, silver

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