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Gold moves up on technicals

Commentaries & Views

There are no surprises in gold for traders monitoring probabilities based on short-term technicals. Gold broke above $1,950 this morning, coming within a hair of $1,960 spot. Should bulls get through $1,960 with conviction, the next level up is $15 higher still.

On the other hand, Silver has not yet tested $25.50 this week, but a 30-cent move up from current price would not be surprising. Platinum bulls are stuck beneath $1,035 still, for now.

The fact the metals are bouncing from support in the face of a stubborn, elevated USD strength bodes well for long-term holders of the physical bullion. Any upcoming weakness in the USD would support the precious metals, at the least.

Stock indexes gave some back yesterday, as should also have been expected. However, futures are pointing to a higher open this morning. Although more short-term churn is likely, the velocity and breadth with which prices have come off the lows indicate that higher highs lie ahead.

The anticipation of higher prices in US Indices may be bolstered by the development of a pattern of lower highs in crude oil and dollar weakness as well.

Thanks and have a great day.

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