Gold was under pressure yesterday as the Greek Finance Minister said in several interviews that his country was committed to repaying all of their debt to the ECB and IMF. The rest of the complex was steady to higher, as better than expected U.S. auto sales for January were attributed to the recent decline in interest rates. The strong performance in U.S. equities yesterday showed just how fast investors and traders are moving from one market to another, as bonds and gold declined sharply while crude has broken above $50.00. Gold and silver have given back much of their 2015 gains over the last week and are now trading in the middle of their recent ranges.
Technically speaking, the market could go either way here, but it is beginning to feel like another big move is on the horizon. Gold and silver are currently trading below their 10-day averages at $1,279.75 and $17.69, but both are trading well above their 50- and 100-day averages. In gold, the averages are currently $1,225.25 and $1,215.25. In silver, they are $16.68 and $16.75. While the events in the Middle East are beyond horrific with ISIS and now Jordan executing prisoners, I would expect this situation to come to a head very soon which will likely propel gold and company back to their recent highs, as tension in the Middle East has never failed to bring a sharp rally to our market.
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