Gold making progress
Gold has been making steady progress since hitting its post-election low this time last week. Last Thursday it fell to $2,536, a level previously seen in early September. Since then, it has made solid, if unspectacular progress, rallying 5%. The post-election slump saw the daily MACD register its most oversold levels since October 2023. Gold’s progress since then has led to the MACD turning up quite sharply, suggesting that overall, momentum is finally pointing upwards. Of course, nothing goes up, or down, in a straight line, no matter how oversold or overbought it may appear. In other words, gold bulls should not be surprised to see a pullback, given this week’s rally. But as long as such pullbacks are shallow, offering an opportunity for fresh buying, then the overall direction of travel should point higher for now. Unfortunately, the situation with silver looks far from clear. Recent rally attempts have repeatedly run out of steam, suggesting that silver may have to turn lower to find a solid base for its next rally. Bulls should keep a close eye on $30, as a significant and protracted break below this level could suggest further weakness.
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