"Hi, hope you are well.

"Re gold and silver, are we throwing good money after bad at the moment by holding our positions, as they seem to be breaking down?"

David Fuller's view My comment - Thanks for the personal comment and especially an email of general interest.

The most important point, and not just for gold and silver, is to ensure that your positions are not of sufficient size to cause you too much stress. If you are leveraged, the stress will be higher.

All four of the futures-traded precious metals are in ranging patterns which can be choppy. People will usually disagree about the medium to somewhat longer-term outlook, especially when prices trade in lengthy ranges, but I think the fundamentals of record low interest rates and unprecedented QE are bullish.

However, there are plenty of other currents in the markets, including the somewhat pathetic US Fiscal Cliff.

There are few guarantees in markets but I will remain overall bullish of precious metals at least while the reaction lows remain higher. Currently, gold (weekly & daily) is short-term oversold and silver (weekly & daily) is nearly oversold.