The last line I wrote on Thursday last week was: “For now, I am braced for more volatility coming on tomorrow morning’s jobs report.” The volatility on Friday did not disappoint; sellers may have done enough to prevent that runaway rally I also alluded to on Thursday.
But despite the swings, thus far, the best the bears could do has been to prevent a runaway rally. A look at the daily chart of gold below shows a channel still intact.
A look at the 3-hour silver chart shows a consolidation taking place within the arc.
Although a breakdown of the above-shown patterns would likely lead to more selling in the short term, until proven otherwise, I continue to believe such an event would only be a better buying opportunity.
Thanks, and have a nice week.
