Metals pop as dollar drops
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Featuring views and opinions written by market professionals, not staff journalists.
As the dollar weakened overnight and into the open, so gold and silver caught a bid. Gold is into the congestion area between $1,835 and $1,850, while silver continues to trade between $21.50 and $22.10. Platinum seems to have found support around $935 again, with resistance at $965.
Stocks continue to be pressured, with the 200-day moving average on the S&P weekly interval chart still some 400 points lower. Looking backward shows the 200DMA is to be respected as far as mean reversion, and the price is now approaching a more suitable delta to the average.
The case for the reversal in the dollar at major resistance continues to develop, and the probability has now improved, as a look at the below chart will show. Should the USD close this week at its low or close, the case for a top in the dollar begins to find ground again. The divergence between price and momentum would be another indicator the USD is ready to roll over.
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