As we noted on Tuesday for gold "Realistically, a close (weekly) over $1685-95 would be constructive" Today gold looks poised for a chance to close the day over $1695 currently sitting at $1698 as of this writing. The below chart shows gold on the daily interval facing resistance at $1725 spot which is aligned with the 50 day MA.
Should gold close the week over $1695 the breakout above the months long downtrend line remains intact.
We also noted on Tuesday that silver bulls would like price to closer over $20.30 on a weekly basis To keep strong bullish momentum intact. As of this writing spot silver trades at $20.21, and is poised to challenge a close over that mark. However traders should be cautious with the gold to silver ratio having bounced off major support, also shown on Tuesday; note the major horizontal and 50 week MA support the ratio is currently benefiting from.
Has today's stronger than expected jobs data given the FED the runway it would like to continue on its aggressive rate hiking path? Perhaps a continued rally in metals would be enough to signal that they are in fact putting on their best poker face in years.
Thanks and have a great weekend.
