Gold at a watershed

Silver found short-term support at $14.50/ounce but declining Trend Index peaks indicate selling pressure and a test of primary support at $14 is likely.

Spot Silver in USD

Gold, by contrast, has found strong support at $1280/ounce, refusing to give way despite concerted selling. Breach of 1280 would signal a test of primary support at 1180 but recovery above 1300 becomes increasingly likely the longer that support holds.

Spot Gold in USD

A rising Dollar would weaken demand for Gold but the Dollar Index has met strong resistance between 97 and 98. Follow-through above 98 would signal a fresh advance but a fall below 97 would be bullish for Gold.

Dollar Index

10-Year Treasury yields have also broken support at 2.4% offering a short-term target of 2.2%. Falling Treasury yields have a depressing effect on the Dollar and boost demand for Gold (by lowering the opportunity cost).

10-Year Treasury Yield

Gold is therefore at a watershed. Breach of strong support for Gold at $1280 would be a strong bear signal but respect would be a bullish sign, suggesting another advance. Probability is still favor of the bearish scenario but the bull case is strengthening.