The downside scenario is playing out in the monetary metals. Gold lost support at its rising trendline. However, gold should find major support somewhere in the highlighted area, as sentiment in the sector continues its slide into outright depression. This may be the spot that long-term investors pick to add to existing holdings, especially in the physical form.
It’s no surprise that silver also continues its descent, having breached below $19 this week. As suggested on Monday morning, the downside target for silver remains in the $18.50 - 75 range. Of course, an overshoot to the downside on capitulative selling in the metals sector is extremely common; bottom pickers should expect to have their mental capital tested, even as the signs of an impending bottom pile up.
With employment data coming in stronger than expected this morning, the market will likely keep believing that the FED will continue to jawbone a sustained aggressive rate hike path, with the "strong economy" narrative as impetus.
Thanks, and have a great week.
