news.goldseek.com / Przemyslaw Radomski, CFA / 22 November 2016
In yesterday’s alert we wrote that staying on the sidelines appeared to be a good idea for the next several days as the short-term outlook became more bullish, even though the medium-term outlook became more bearish (due to the USD’s breakout). Actually, at the moment when our yesterday’s alert was sent, gold and silver’s prices were below the entry prices, so the position was closed at a profit.
In yesterday’s session, not much changed – the USD declined a bit, while the opposite was the case with gold, silver and mining stocks. Nothing extraordinary took place.
However, today’s pre-market trading is more interesting. The USD Index is basically flat, but silver jumped up almost $0.30, showing strength. Gold is up as well. The above relative price moves confirm that the precious metals sector really wants to move higher in the short term, and that until it does, daily declines will be limited. Let’s take a look at the USD Index chart (charts courtesy of http://stockcharts.com).