Yesterday morning, gold had a strong start as it pushed up above $4,240 to trade at its best levels in three weeks. But it pulled back during the afternoon session, dropping below $4,150 before it managed to steady and went on to end the session little changed.
It was down again this morning and retesting yesterday’s lows. But then the selloff accelerated, as prices dropped back towards $4,100. The daily MACD does suggest that momentum is to the upside. But given the bounce-back over the past week, gold may need another period of consolidation before it’s ready to head higher.
On the flip side, there’s always the risk of another lurch lower with a retest of the October low on a break of $3,900 a possibility. It’s a very difficult call at current levels.
Source: TN Trader
Silver managed to outperform gold on this latest upside move. Yesterday, it came within 25 cents of its all-time intra-day high from mid-October. That’s close enough to suggest that silver has made a ‘double top’, which is something of a historical feature on silver’s charts.
Like gold, silver has pulled back from yesterday’s high. But as yet it’s too early to know if this is a straightforward period of consolidation ahead of another push higher, or the start of a bigger downside move. Perhaps we’ll know more as we head into the weekend.
