My last words on Friday last week were, “If nothing else, brace for upcoming volatility.” The market delivered in spades Monday morning, with silver making a full $1 pop and dropping in a 3-hour timeframe.
Again, yesterday at 6PM EST open, a similar move occurred in gold for a $30 roundtrip (spot) up and down. In my opinion, despite the seller’s best efforts thus far, the action remains bullish.
The daily chart of gold below shows the price making yet another high with room for momentum to stretch all the way up. Note that gold printed an all-time high in the Canadian dollar at open last night.
The 4-hour silver chart I presented on Friday is updated below; it shows the extent of the last few days’ volatility.
Although the initial breakout from the flag Monday morning was reversed, sellers failed to breach the downside parameter and quickly took a kick in the teeth with the upward thrust from the reoccurring $24.50 level.
To me, the question is whether bulls have enough left in the tank to push gold on a run above all-time highs in the short term - possibly igniting a FOMO wave of buying? For now, I am braced for more volatility coming on tomorrow morning’s jobs report.
Thanks, and good luck.
