Three important charts as we wrap up Thursday ahead of another BLS BS report tomorrow am.
First, here are 30-minute gold and silver charts. You can see the decline in all its glory but you can also see the future. In gold, a break of 1365 would clearly be bad. However, a move back UP through 1385 would be very positive. Silver looks better and may lead big bro gold higher. As long as the 28.60-80 area holds, we look fine. A move back UP through 29.40 begins the short squeeze and a move through 29.60 may cause a panic, short-covering rally back to near 30. For what its worth, however, we do know that both metals rest tonight at the low end of the recent ranges.
Here's what I'm getting at: The $ has moved surprisingly higher on expectations of an improving economy and employment. As you know, I think this is all crap, spin and hyperbole. The BLS may issue a slightly better than December number tomorrow but this nonsense of 400M+ new jobs is exactly that...nonsense. My belief is that, post report tomorrow, the USDX will sell off back toward the middle of its range and the PMs will rally back to their middle. A sort of mean reversion, if you will.
On a side note, what the heck is this all about?
This, combined with all the dead birds and rotting fish, makes me think of this:
Interesting times we live in. Very, very interesting. TF
It's late and I'm tired but here I am, still searching for clues as to the short term direction of PM price.
Here's a little something to chew on. While gold and silver traded and closed higher on the Death Star back on Monday, copper was down all day. Copper then played along in the beatdown of Tuesday and Wednesday. After bouncing, it rests tonight on pretty significant/important support above 4.28-30. I think we'd better watch copper very closely tomorrow for clues of next week's PM performance.