As expected, volatility manifested and early, especially in silver, as the metal was sold down yesterday indiscriminately from its opening high of $22.50. Although the consolidation zone between $21.50 and $22.10 remains, it is pretty clear that the big number silver needs to cross is $22.50. Silver has tested the level thrice in the past three weeks.
Platinum was rejected off $1,035 but held $1,000 overnight. It is quite normal for platinum to pause after its recent run-up before a leg higher, but to keep the move over $1,035 alive - bulls want to see 4 digits hold.
The USD index has indeed found support off the bottom channel of its upward trend (shown below), for now.
Is the USD in the process of topping? Friday’s CPI data may be the catalyst needed to drive a sustainable reversal in the dollar.
Thanks and have a nice day,
