Strictly speaking, yes it is too soon to call a bottom in the metals futures markets. While gold, silver, and platinum are all technically oversold, there is still no indication of a bottom yet. However, it is usually just a level on a chart that stops or reverses a market’s direction. Gold futures have now taken out the $1,225 support level and look to test the key support level at $1,200. I think that somewhere between $1,205 to $1,195 is a good value range that is likely to bring buyers back to the gold market. Silver is approaching $16.00 and that trading range from $16.00 to $15.95 should be considered good value in my opinion. Platinum has now traded $900 this morning and I think that the downside is now very limited.
So, when trying to pick bottoms and tops in markets that are overdone and testing long term chart levels that you would expect to hold, you would be best advised to use limited risk option strategies. When executing counter trend strategies always take steps to manage the risk.