Gold stands above $1880 chief strategist: beware that gold and silver will fall sharply and gold may fall by another $80

SMM: gold and silver prices rose during intraday trading in the United States on Monday. The precious metals market was supported by the decline of the dollar index on the day. After hitting two-month lows last week, both precious metals have seen short covering in the futures market and bargain-hunting in the spot market.

In the US market, spot gold broke through the $1880 / oz mark, hitting a high of $1882.90 / oz, up $34 from a session low. Spot silver hit as high as $23.714 an ounce.

Discussions between Democrats and Republicans on the second round of the US economic stimulus package are still going on.

The highlight of this week's US economic data will be the September non-farm payrolls report released by the Labor Department on Friday. Non-farm payrolls are expected to increase by 875000 and the unemployment rate is expected to be 8.2 per cent.

On the outlook for gold and silver, Todd Horwitz, chief market strategist at BubbaTrading.com, wrote that the sell-off in gold, silver and platinum continued as the market looked for a bottom. There has never been an absolute level to determine the level of the market; all we can do is set levels of support and resistance as guidance.

Horwitz says the level they observe is determined by the price and volume at a particular point in any chart. In terms of gold, silver and platinum, support and resistance are clear. However, there is no guarantee that they will be maintained. Remember, they are only used as guidance when we manage to take long or short positions.

'they are still shorting gold, silver and platinum, hoping to see prices fall sharply before the next rally begins, 'Horwitz wrote. In the short term, $1850 could be the support for December gold; however, the chart shows that $1800 is also at work.

For silver, the first support level should be $22.50, but $22 is also at work. Platinum's first test level is $830, but their target price is $800.

Horwitz said their position had not changed. They are shorting these metals across the board, and prices are expected to fall. Remember, there is no guarantee that it will not change on any day. However, this is today's plan.