We had suggested $1,785 gold as support should the bulls lose $1,800; that occurred as gold bounced hard off $1,785 on Friday. Silver bore the brunt of last week’s selling, having lost support at its 200-week moving average. Silver investor sentiment has become downright bleak, and experienced metals traders may take this as a contrarian indicator and a sign a bottom could be close
Caution: the current setup in silver is also conducive to a waterfall-type selloff that may see it trade down aggressively this week, to the $18.50 level before a bottom is found. $18.50 is the price at which silver broke out in the summer of 2020 and coincides roughly with the 61.8% Fibonacci retracement.
With the USD continuing its ascent to new yearly highs today, the case can be made that gold is holding up very well and continues to churn sideways to set the stage for another leg up once dollar strength subsides in earnest.
