Precious metals are gravitating around yesterday's settlement prices on light volume this morning as geopolitical events support prices, while decent global economic data pressure prices. Technically speaking, the range in gold continues to narrow with support at the 100-day moving average at $1,302.50 and resistance at the 10-day average at $1,313.25.
Beyond these levels, gold should find further support at $1,294.00, which is the 50-day average, with resistance looking stiff from $1,325.00 through $1,340.00. Silver continues to find support below $21.00, but fades quickly on any rally attempt with significant resistance looming at $21.50. Keep an eye on bond yields for a clue on where precious metals go next. The 10-year yield is again below 2.50 percent and is currently at 2.45 percent. A move below 2.40 percent should assist gold in moving higher while a yield moving back towards 2.55 percent is likely to send gold and precious metals prices lower.
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