Despite Friday’s steady day (with prices moving higher late in the day), there was no follow through in Asia overnight as early physical demand did not last long. With CFTC data released on Friday showing COMEX short positions continued to be covered and long positions continued to be added, we were faced with an overnight market where short sellers were anxious to get back in and “longs” were not willing to miss the opportunity to lock in profits.
As gold and silver began to move lower, sell stops were triggered in gold below $1,330.00 and $1,315.00 with silver seeing the same below $21.40 and $21.25. This morning finds gold still being pressured and fighting to remain above $1,300.00 while silver and platinum were not able to hold $21.00 and $1,500.00. Key support level in gold today is $1,292.85 which is the 50-day moving average and the lowest of the 10, 50 and 100-day moving averages. The 50-day moving average in silver is $19.95 and again the lowest of the 10, 50 and 100-day averages.
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