Metals bid as USD strength eases
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The short-term bounce we suggested last week has materialized after a brief overnight move down to $1,785 on Sunday. Silver has also pushed higher, now trading back in the zone between $21.50 and $22.10. The gold to silver ratio (shown below) may be in the process of coming down to back-test its break out, indicating that metals have room to move higher in the short term.
A look at the USD shows a consolidation is in progress as the breakout above long-term resistance did not follow through higher. US indices are also catching a bid this morning. Should the dollar continue lower with conviction and form a “false breakout,” that may become a tailwind for stocks and metals and extend their relief rallies into the medium term, at the least.
Thanks and have a great day,