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,
