Since last weeks surge higher, gold and silver have been on a roller coaster ride this week. Mondays trade saw all the previous weeks gains whisked away only to see both markets rally back near the prior weeks highs by the close today. While equities remain bid, it has been the sell-off in the Dollar that has been the main catalyst for gold and silvers resurgence so far this week. Like the energy sector and for a few different reasons, dips in metals remain buying opportunities in my view once again. Still though going forward its going to be all about the data and the Dollar. The market is hypersensitive to the data and the Fed speak but has remained resilient against an unrelenting equity market rally. There seems to be enough uncertainty regarding future actions by the Fed, Washington DC political chaos, and geo-political concerns that have kept the sizable longs interested and not throwing in the towel with their sizable long positions. We therefore go back to the charts for direction.
For gold strong trend line resistance sits just above here at 1297.0 off the weekly continuous chart. A close above and the market trades up to 1308.0 A close above that level and the market could push up to 1324.0. Support is down first at 1282.8 the 100 day moving average and below there the 200 day at 1266.2. Cross zone trend line support sits down at 1255 and that level will be tested if we get a settle below 1266 in my opinion. For silver, minor resistance is at 17.30. Strong resistance sits up at trend lines coming in first at 1753, and then up at 1773. Support sits at 1703 and 16.92 near term. Major support sits down at 16.67. A close under and 16.25 is next.