Gold edged marginally higher overnight, holding above $3,300 which has been recently developing as an area of intermediate support. Gold continues to consolidate.
If one blots out its spike up to a record high of $3,500 from mid-April, while also ignoring its subsequent drop to $3,120, gold has broadly traded in a range between $3,400 and $3,200 for the last two months.
Source: TN Trader
In other words, it is consolidating after its long bull run. This has helped the daily MACD reset near neutral levels, pulling back from being very overbought in April. Unfortunately, this consolidation and recent price action offer little in the way of clues as to where it may head next.
Meanwhile, silver continues to outperform. Over the past week it has broken above key levels: $34, $35 and $36 per ounce, and only narrowly missing $37 overnight. It has pulled back a touch this morning, and the daily MACD is now as overbought as it was last May.
Silver may have to do some consolidating itself to put it in a better position if it is to attempt to hit its own all-time highs.
