Spot gold continues to trend lower, establishing yet another round of 6-month lows in overseas trading. Persistent strength in the dollar and trade war concerns continue to weigh.


The Trump administration has reportedly backed-off on plans to limit Chinese investments in U.S. technology firms. The stock market found some relief in that news.


However, rumblings of possible tariffs on automobiles exported to the U.S. persist. Such a move would assuredly garner retaliatory action, expanding the trade war dramatically. U.S. automakers and workers seem nonplussed.


As gold continues to trade like a commodity, today’s downside extension bodes well for a challenge of the 1236.41 low from 12-Dec-17. This level is bolstered by Fibonacci support at 1244.40 (50% retracement level of the rally from 1122.82 Dec 2016 low to 1365.98 25-Jan high), as well as the 200-week moving average at 1233.78.


Gold has been lower 8 out of the last 9 sessions, which has resulted in a developing oversold condition. That may garner at least a modest corrective bounce, but any such move is likely to be viewed as a selling opportunity.


Initial resistance is marked by the intraday high at 1260.07. Above that, the previous two daily highs 1267.56 and 1272.45 resist.


Silver remains comparatively supported above the low for the year at 16.04 (01-May) . This leaves silver locked within the well-defined range, at least for the time being. While the range is intact, the downside remains vulnerable.


A short-term breach of the 16.04 low would clear the way for a challenge of the low end of the broader range at 15.61 (Dec 2017 low). A climb back above 16.48/51 would set a more positive tone within the range.


Platinum extended to the downside to set a new 28-month low at 851.09. Scope remains for a challenge of the key 810.30 low from Jan 2016. Minor intervening support is noted at 849.60. Initial resistance is at 867.80.


Palladium has been unable to generate any upside follow-through after bouncing from in front of support at 929.92 (02-May low) and forming a key reversal. A breach of chart/Fibonacci resistance at 965.81/967.82 would highlight the halfway back point of the recent decline at 979.28.


On the other hand, if support at 930.72/929.92 gives way, the low from April at 889.44 would be the attraction.


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