Market Commentary
An unremarkable weekend saw gold commence trading unchanged at 1187.00/1188.00 before peaking at a high of 1188.75/1189.75, on fund bidding. The metal was gradually repudiated through the morning in favour of an invigorated dollar, lapsing to a low of 1177.00/1178.00. The commodity concluded the session at 1181.25/1182.25 after a lackluster afternoon.
Drifting aimlessly over the weekend, silver opened practically unchanged at 17.73/17.76, before achieving a high of 17.77/17.80 in early trading. The commodity was later impaired, triggering latent stops, to a low 17.45/17.48 after stalking gold lower. The metal mobilized a close of 17.54/17.57, taking a cue from recuperating base metals in the afternoon.
Technical Commentary
Gold deteriorated again today, with the down move to 1178 exactly yielding a measured move target of our Elliot wave off 1265. The 1178 move represents the case where wave five is equal to wave one in distance, with wave one exactly $40 in distance. Wave five started at 1218 making 1178 the exact $40 move. True support in Gold lies at 1167 from the May 21 low, with the close in gold below last weeks low of 1187 keeping price risk to the down side.
After hitting a fresh July low of 17.45, silver closed at 17.57, its lowest close since early June. Next support is seen at 17.23 followed by 17.10. The Gold-Silver ratio broke through last weeks high of 67.00 and closed at 67.23. This aggressive move off Friday’s low of 65.94 fails to run into significant resistance until July’s high of 67.97.
