Time limits me to only a brief post this morning but the charts tell you all you need to know, anyway. It seems that the global currency coordination has allowed some sanity to return to the PM pits. The mindless throwaway of gold and silver has ended for now so perhaps we can start rebuilding.
First up, gold. We discussed yesterday how 1405 was the first hurdle and 1420 was next. When 1405 was finally breached last evening, buy stops were triggered and, overnight, we reached all the way to 1424. We’ve since pulled back to 1418. Watch that 1420 level today. A close above there will set us up quite nicely as we head into next week.
Silver is at almost the same technical point. It first needs to clear and close above 35. From there, a close back above 36 would be enough to get me thinking that new highs are just around the corner.
Lastly, the USDX is not looking good at all. The old support near 76.50 has failed and its desperately trying to stay above 76. A close today, at this level, would imply that a test of the critical support of 75 is coming very soon.
OK, let’s see what happens. I’ve got lasts of 1418 and 35.01 so its going to be fun to watch.
Have a great Friday! TF
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