- The gold/silver ratio has tumbled back below the 20-day moving average, -1.14% on the day.
- US Dollar holding its ground, pressuring the precious metals.
The Dollar is out of favour but still holds in there, capping progress in the precious metals, hell-bent on higher grounds. However, from a technical perspective, the series of bearish gold pin bars on the daily charts do not bode well for the bulls. However, on the upside, 1410 was cleared by the close and bulls can look ahead to the 1440 key resistance which makes way for a continuation to the May 2012 lows at 1527. On the downside, a test below the 20-day moving average around 1395 opens a run towards the 50% retracement of the April swing lows to late June swing highs around 1352.
Silver remains based on the 15 handle and has managed to pierce the descending resistance from 21 June highs. Bulls can aim for 15.64 and then 15.80 as key levels. On the flipside, 15.05 guards 14.90 and then14.64 ahead of the 14.29 swing lows. On a continuation to the upside, 15.60 is a target level.