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Is gold forming support higher up?

Commentaries & Views

Although gold failed to break through with conviction, the test of the $1,960 - $1,965 level is positive. Bulls will look to defend $1,950, which may be new support; should $1,950 fall, it would not be surprising to see support established around $1,935. Silver, however, showed how bright it can shine, with a move above $25.50 yesterday. It would be extremely bullish for silver should support form and hold above that $25.50 - $25.60 mark.

Stock index futures are pointing to yet another higher open today, as the price of crude oil is cooling. A move back down under $105 in crude oil with conviction would be the early sign that a lower high is in progress. A sustained, stable correction in oil may become another justification for a long position in equities.

Thanks, and have a great weekend.

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