“There are certainly a lot of data points to consider. Maybe the dots connect? I’ll let you decide.
First of all, we have to start with a review of what was a very solid…and surprising…day. I say “surprising” because I am still very concerned that price is going to be hit yet again later this month as crunch time for August Comex deliveries approaches. Yes, we moved up nicely today and, yes, from a technical standpoint the rallies were significant. However, early delivery month spikes UP are not unprecedented this year. Below are just a few examples:
Date Price Change
Anyway, I don’t want to minimize how nice today was but I don’t want you getting too excited just yet, either. On the charts below, you can see where both gold and silver have moved back to a spot where they now need to follow through. IF they can, and gold moves through and remains above the 50-day MA at $1316 and horizontal resistance at $1321, THEN we can begin to get excited. Equally in silver, if it can move through the 50-day at $20.42 and then important resistance at $21, then we can let our hearts get aflutter. For now, let’s just watch closely and remain mindful of the calendar.”