Precious metals are being dominated by technical factors at the moment as geopolitical events and economic data are being discounted by market participants that are happy to “trade the range.” This week’s trading activity is a good example, as gold and silver failed to hold $1,250.00 and $17.50 selling quickly entered the market. Physical demand picked up during the sell-off and silver holding $17.00 appeared to be the catalyst for short term traders to lock in profits.
U.S. equities continue to hold the page one headline as the incredible volatility continues. Barring a sell-off today, the U.S. market will record a weekly gain for the first time in a month. The settlement price for gold and silver could be critical today as a close above or below the 10-day moving average in gold at $1,238.90 and $17.35 silver could signal the direction the market takes next week.
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