Have metals bulls lost momentum?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Selling in metals has accelerated after bulls stalled at $1,960 in after-hours trading yesterday. Silver has been the hardest hit, but it seems to have found support at $24.60 as of this writing.
Although oscillation around support and resistance level will occur, the "bullish benefit of the doubt" has evaporated. As of now, the medium-term path of least resistance in metals is likely lower for a test of the $1,920 - $1,915 area in gold.
Traders may be waiting for bounces to sell into or to enter short positions; a close of over $1,965 would change the outlook. Enthusiasts of physical metal, however, may embrace the medium-term downward pressure with anticipation of an opportunity to turn the same amount of fiat into more metal.
US stock indices are pointing to a higher open again this morning. The wedge highlighted in earlier pieces (updated below) seems to be on the cusp of breaking out. However, there may be some minor resistance here as bulls attempt to break out in earnest.