Gold and Silver Pull Back To Support
Since the overnight highs on Thursday night and Friday morning, gold and silver have both started to pull back. Gold reached $1,362 and silver $18.29. Gold is now trading $1,340 and silver $17.88. This action is healthy for the markets and should have been expected.
Markets go through different phases and when they reach a level of support or resistance, we should expect a rally or selloff. We will now watch the $1,340 level in gold as we look to be buyers. We are waiting to make sure the $1,340 level will hold to buy more.
We never know for sure if a level will hold but markets leave a valid footprint giving us a high probability opinion of the next move. Based on that information both gold and silver should hold their support levels and move higher from here.