Gold, silver bulls have the momentum, how much higher?
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Featuring views and opinions written by market professionals, not staff journalists.
Both metals are now facing resistance at their overhead trendlines from their May highs; both daily charts are shown below.
Last week, I also noted the potential for the trade to morph into a positional one rather than a swing; the action this week thus far is convincing me to hold onto the gold. That said, there are still two important catalysts for volatility this week, with PCE data tomorrow and job numbers on Friday. If you are looking to skirt the emotional reverberations and a possible mistake, a flip from silver to gold may still be the way to play it.
Overall, I think this move deserves the benefit of the doubt, and I will be watching the $1960 - 75 price level in Spot Gold next.