Gold, Silver Weak; Crude Finds Bottom
Suyog Chandak | Aug 09, 2016 12:37AM ET
Gold
Gold had a very quiet day and it only had a range of $7 or 0.5%. This means it is digesting the move and we could see some capitulation here. It is right in front of support near 1335 and could also break that to go lower towards 1300. Currently, it seems uncertain and it is best to stay away.
Current call: Avoid
Silver
Silver showed sign of further weakness yesterday, but bounced off 19.6. We could see some further consolidation before it moves lower from here. It it slightly extended and the moving averages need to catch up. I will avoid trading silver until it shows some direction. With the rate hike in prospect, it could definitely topple.
Current call: Avoid
Crude
Crude gave a great move on Monday. It has now put in 4 consecutive days of higher highs and higher lows and has broken the short-term downtrend. It could have a red day today to digest the move from the previous days. I feel the inventory report tomorrow will act as a stimulus for crude to move higher. Everyone who is long is in a much better position than anyone else.
Current call: Hold longs
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