Make Kitco Your Homepage

Friday follow through for metals bulls?

Commentaries & Views

Resistance at $1,850 gold and $22.10 silver should be no surprise; both metals have turned down after coming within a hair of touching both numbers on the nose overnight. Platinum continues to face resistance at $965.

The USD is looking like it wants to continue to give up some gains. Looking at a daily chart of the USD index below, the lower trendline reveals where the King currency may be headed in the short term against its basket of peers. A continuation lower and a breach of that bottom trendline with conviction would be a concrete signal of a reversal in USD strength.

Should the dollar close this week at its low, that should coincide with a close over the resistance levels of $1,850 and $22.10 for the monetary metals, and bode well for the medium term. Likewise, the major US indices should also catch a bid, if just as a function of it taking more dollars to purchase an equal amount of units.

Of course, traders attempting to capture short-term moves should remain extremely vigilant on stops in this ever-volatile market.

Thanks and have a great weekend,

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.