Once again the gold and silver bulls are standing up to the strength in the dollar with the dollar forging a new high for the week and the highest price since March 13th this morning! In short the gold market is showing a bullish resiliency even if the benefits of the Fed appear to be waning.
While many longer-term traders are suggesting that gold and silver have turned into classic long-term bull markets, near term currency market influences could make straightaway gains difficult. In fact, seeing the June dollar index forge a trade back above 96.25 could press June gold prices below critical uptrend channel support at $1,307.20.
The gold market also appears to be attracted to the 50 day moving average with prices waffling around both sides of that level ($1,314.60) in each of the last four trading sessions. However it should be noted that June gold spent the majority of this morning's session above the 50 day moving average pivot point and well above uptrend channel support which sits down at $1308.05.
Overnight gold and silver derivative holdings were virtually unchanged, but strong trading volume over the prior two trading sessions would seem to indicate ongoing bullish interest in gold despite the market sitting $31 an ounce above this month's lows.
May silver spiked higher yesterday and stopped almost exactly on its 50 day moving average at $15.65 and May silver's low yesterday nearly coincided with a 200 day moving average down at $15.36 and therefore silver appears to be facing a key pivot point decision today. In the end, silver looks to remain fixed to the coattails of gold and is generally uninterested in Dollar action!
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Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.
