Gold continues to look like it wants to test support at around 1270. A rise above 1300 could put that prospect in the rear view mirror, however.
It remains all one market vs. the US dollar, AKA the anti-market. SPY has actually remained somewhat on its own course over the last week, but the others are strictly in anti-USD mode right on down to the little hook upward this morning as Uncle Buck hooks down. Silver, which I got longer on yesterday, is the most sensitive.
Well, gold bugs should not necessarily be afraid. As noted in an NFTRH Update last week the seemingly frustrating lack of silver leadership is not really something to worry about. An HUI-GSR positive correlation has happened before; like from 2000 to 2003 at the birth of the secular bull market.
It is interesting how sometimes a chart will do what it thinks it is supposed to do, even in the face of other information that says it should do something else. Silver’s chart, as we have been noting, was supposed to test support and that is what it has been doing while the rest of the precious metals complex rises.
Two reasons for this post…
- I probably don’t post enough publicly on precious metals because I do so much of it in the premium service and…
- I don’t want that disgusting FTEK post to be the first thing I wake up to in the morning.
Silver has been systematically working its way down in a short term consolidation channel (bullish until proven otherwise) after hitting NFTRH’s initial target in the 22′s. As noted a couple weeks ago in the letter (or an update), the support level at 20 (+/-) is going to be tested at some point, so it may as well be sooner rather than later.
This has been good work by silver thus far. Now if only we can bleed out some of the over bullish sentiment that 2 months of positive sector activity has instigated.
The original intent was as noted here at the site last week, to allow some room to build a bearish case for 3D Systems (DDD). But even with 30 pages that did not happen. Maybe I’ll find time to do it as a public post.
What did happen was a well rounded look at the precious metals along with the usual markets. Also this somehow got into the ‘Wrap Up’ segment…