Gold and silver continue to feel vulnerable, as gold struggles to hold around $1,250.00 while silver, for the moment, is putting up a good fight just below $19.00. Platinum and palladium, while bending a bit, continue to hold $1,450.00 and $825.00. U.S. equities continue to march higher which weighs on gold and silver, while mixed economic data has surprisingly not added any support despite another rally in bonds, which has seen the ten-year bond yield falling to 2.40 percent.
Short term sentiment in gold and silver will remain negative with the bears and shorts in control until we see a break and close above the ten-day moving average, which currently stands at $1,279.25 in gold and $19.27 in silver. Physical demand has increased sharply this week with the lower spot prices, but if that demand begins to pull away, $1,225.00 and $18.50 could be seen quickly. Our markets are fairly quiet in early trading today, but as it is month end, I expect one volatile move to come later today as we approach the close and traders close out positions with an eye to a fresh start on Monday.
Good luck and good weekend,
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