Wednesday's Gold And Silver Technicals
Doug Eberhardt | Sep 03, 2014 11:15AM ET
Both Gold and Silver turned from sidelines mode to very weak downtrend with the move down in price today. However, gold did not breach its August 21 low. Both gold and silver are still below their 20-day moving average. The beginning of September has traditionally been a bullish period for the precious metals. Europe returns in full force, NY traders are refocused after having their last seasonal party in the Hamptons, and money that has been on the sidelines finds its way back into the market. Today, the precious metals didn’t seem to take notice of the bullish historical trend though as negative price action dominated the market. Even Russian President Putin claiming that he could “take Ukraine within 2 weeks” was not enough to keep gold in the black. Indifference to geopolitical drama combined with a stronger USD sent gold down over $20 on the day. Gold broke below an eight point trendline before buying emerged at $1,263, the 38.2% Fibonacci retracement of the low ($1,182.60) and high ($1,392.30) of 2014. With gold being liquidated today, silver also continued its march lower. The $19 figure will prove to be a pivotal area for silver this week.
- h3 Total score of -60: down from -55 for both gold and silver/h3
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