Gold Overview

Gold posted a decline yesterday on the back of renewed strengthening in the US dollar as global investors were again nervous about sovereign debt troubles in Europe. Expectations over the weekend that Greece might finally reach an agreement with its creditors did not materialize yet and that challenged the bullish momentum in the precious metal. Some technical considerations as gold’s price was getting too far above the moving averages might have also influenced investors’ decision to take profits off table thus pushing for $8.90 retracement to $1729.50.

Moving Averages:   9 day 1700.11        14 day 1681.76       40 day 1638.83

 

Silver Overview

Albeit reaching higher initially, the rebound in the US dollar in a risk-off trading session also triggered a pullback in silver, 40 cents to $33.470. Nonetheless the intraday outlook remains bullish and we would not be surprised to see a resumption in the uptrend. One detail supporting this view is the fact that strong resistance turned support at $33.000 held successfully yesterday.

 Moving Averages:   9 day 32.751    14 day 31.795      40 day 30.267