Metals took another hit today. It wasn’t small, and it’s on top of the past couple of declines. If it is becoming a serious correction, I would expect to see volume picking up. If it is going to be short and shallow, volume will be relatively low, and price support will find buyers. So much depends on the direction of the $USD, and it’s leveled off, and holding steady… at the present time. If it should commence to decline further, the metals will resume their climb. For the $USD, the magic level would seem to be at 94. So, what do the charts say???
First off, I see those that declined on lighter volume, like CDE, HL, KGC, IAG, RIC, AGI, SLV and GLD.
Those that declined on average, or similar volume as they have recently, like AG, EXK, FSM, NGD, ABX, AU, RGLD, SGDM and SLW.
But, also any that declined on heavier volume, like PAAS, AUY, SA and GDX.
This is a correction, and prices are now arriving at their first level of price support in their charts, having given back a good bit of their most recent gains. It all looks orderly and healthy at this time.
As I write this evening, at 9:45 pm EST, the market is flat. I’ll add more in the morning, if there’s reason to.
Gold is showing a tiny upside this morning. As it is near price support, that’s not so surprising. The real mover will be the direction of the $USD and it had risen overnight, but is falling back again, causing this tiny lift.
Here’s to the accumulation of real wealth!
Harold F Crowell