Silver is Breaking Out, Where To?
Gold (April) / Silver (May)
Gold, yesterday’s close: Settled at 19499.6, up 8.5
Silver, yesterday’s close: Settled at 22.786, up 0.361
Fundamentals: Gold and Silver had a strong session, settling higher before the Fed announcement and carrying added strength through the electronic close. Per our discussion in the E-mini S&P/NQ section, the Fed hiked by 25bps, which was in line with the 5.1% terminal rate expected, and Fed Chair Powell was not dovish, however, it was U.S. Treasury Secretary Yellen who dented risk-sentiment with her banking comments. Gold and Silver were able to use this as a bullish tailwind overnight and are now digesting a better than expected Jobless Claims number at 191k versus 196k. We remain optimistic, but one must understand the situation continues to evolve, and traders should not chase into spikes.
Technicals: Gold traded into major three-star support yesterday at 1936.4-1938, with Silver remaining much more constructive, building a flagging pattern. The initial hold of of strength yesterday warranted a reinvigoration of Bullish Bias, and this was confirmed with Gold trading out above major three-star resistance at 1967.1-1975.2 and Silver breaking out above major three-star resistance at 22.60-22.81. There is still a lot of work to do, and Gold must decisively move above the 1967.1-1975.2 pocket, denoted as our Pivot, and Silver must secure a close above resistance at ... Click here to get our (FULL) daily reports emailed to you!
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On the date of publication, Bill Baruch did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.