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Gold and silver down, but not out!

Commentaries & Views

After Tuesday night's sharp pull-back, metals bulls are showing resilience, having taken gold back up over $1,850. Silver has gone from a picture of frustration to that of hope in a very short amount of time. Seasoned traders will fight every instinct to act on emotion, choosing to rely on probability; sometimes, the probabilities change quickly.

Should silver realize a close over the yellow highlighted area, a move higher to around $23.50 becomes ever more likely. For gold, a close above $1,865 this week would likely open the door to $1,885 and then $1,900 again. In this choppy environment, traders may elect to wait for a close above the aforementioned levels for a sign that a trending move up (at least in the short term) has begun.

The same goes for the S&P 500, which threatens to close the week within the yellow highlighted area. Should bulls succeed, a move higher back to the top of the box becomes likely. Could gold and stocks be anticipating a longer-term top in the USD?

Thanks and have a great day,

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.