Gold came off the high established Monday and in doing so has established a swing high at 1517. The up trend is intact and will stay that way until a lower low is established by taking out the swing low at 1444. For now support is coming in at former resistance at 1476. RSI is in over-bought territory above 70 and stochastic remains embedded. As long as stochastic remains above 80, all pullbacks are considered buying opportunities. A cross of the 80 level will target the 18 day moving average, currently at 1471. Gold is holding up really well and is truly acting like the future reserve asset that it is. I think we are in for a pullback to the 1476 area and then we are off to new highs.
Silver is getting the correction it sorely needed. Eventually a market runs so hard that it runs away from buyers willing to take on the increased risk. Even with the nice pullback, a buyer would not be wrong about trend until the last swing low is taken out at 39.72! I think this market needs to see a re-test of the 42 area to generate big bullish interest to try for 50 again. A pullback to this level would still retain the uptrend and at the same time reduce risk to $2 instead of $6. Support is at the previous swing high at 41.93. RSI is still way over-bought and stochastic remains embedded, just barely. A cross of 80 on stochastic targets the 18 day moving average (dotted gray), currently at 41.70 and climbing.