Market Commentary
Gold excelled overnight, opening at its intraday low of 1207.50/1208.50, as the dollar recoiled after Alcoa’s sanguine economic forecast and Greek debt sales buttressed optimism in the economic recovery. The metal was bolstered by buoyant-fund buying, attaining a high of 1218.50/1219.50 early morning, as the dollar continued to be surmounted. The commodity suffered through the afternoon however, closing the day at 1213.00/1214.00, as funds captured profit.
Emulating gold overnight, silver opened the day on its intraday low of 18.12/18.15, amid dollar infirmity. The greenback’s subjugation briskly impelled the metal to a high of 18.33/18.36 early in trading, before an afternoon siesta drove the commodity to a close of 18.23/18.26.
Technical Commentary
Gold witnessed a healthy jump higher today to 1213, while taking out stop losses above 1215, but failing to close above that level. Our key Elliot wave resistance is 1225, which must hold to maintain the bearish price outlook. Gold has failed to produce two consecutive positive closes, and we continue to require a few higher closes to convince the market it has turned back up.
Silver closed at its highest level in July at 18.25, breaking 18.22 and negating our bearish Elliot wave down cycle off 19.46, as wave 4 can not over lap wave 1. The Gold-Silver ratio has declined today to 66.45. We require a close below 65.55 to bring in fresh selling of the ratio.
