Gold: Slow price action is not Bad price action
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After touching $1,915 yesterday intraday, gold reversed and stayed in its support range. Until proven otherwise, with a close or breakdown below $1,915 with conviction, the probability continues to favor a move back to $1,950 onto $1,965. Silver bulls will be looking at $25.50 resistance in parallel to the levels in gold. Platinum continues to trade over $1,000 and should form a base between there and $1,035 before making another run at $1,065.
With stocks facing resistance at major moving averages on the daily interval timeframe, this may be the spot where a pullback and minor consolidation occurs before another leg up toward the all-time. US indices have recouped over 50% of the gains given up in the sideways down grind they were stuck in since December 2021; this has been accomplished in less than seven trading days.
The USD index might be at the tail end of a 9-month move, dating back to June 2021. The index is facing resistance at the 100 level. A rollover in the DXY would put a tailwind behind stocks and the metals market alike, not to mention Bitcoin and the other primary cryptocurrencies. This is something to look out for in the medium term.
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