Gold reversed back down under the $1,845 level as chairman Powell delivered his testimony, where he reiterated the Fed’s commitment to battling inflation (of course, not without the usual qualifiers). The 200-day moving average in gold proves its resistance yet again. Bears, however, despite the committed Fed, have failed to get gold below $1,800.
Taking a zoomed-out view on silver:
- It is approaching support at its 200-week moving average.
- It is supported at the 50% Fibonacci retracement level going back to the March 2020 bottom.
- The weekly stochastics are oversold and will cycle back to overbought.
The better metals bulls can defend major long-term support in the face of this interest rate hike cycle, the better the prospects become for a major move higher on a change in monetary policy.
