NFTRH Update, Precious Metals End of Day Snapshot

The 10 vs. 2 year yield spread dropped, which was an in-day negative not to be given undue weight based on one day, but to be respected none the less.  Interestingly, the sector went nowhere (GDX) to down (GDXJ, gold, silver) yesterday as the spread popped.  Today spread down, sector up.

10.2

GDX got double yesterday’s volume.  That was good.  The next step is that it needs to take the moving averages back to indicate that another leg up is beginning.

gdx

GDXJ got good volume as well.  Same status as GDX.  Both bounced from within potential support areas.

gdxj

Gold may have found support although technically, we can allow for one more drop.

gold

Silver got a bump and like gold, may have found support although there is no technical sign of a bottom yet.  For example, MACD (not shown) has not made an up trigger.  Currently expecting silver to lead gold in the next up phase, whether that is starting now or pending more bottom making.

silver

As we have been noting, the silver-gold ratio has triggered up by MACD and been holding the support defined from last summer.  I would like to see silver continue leading to firm a bull case.

MACD has not triggered on any of gold, silver, GDX or GDXJ.  RSI generally came to over sold levels that could support a bottom.  Technical confirmations would not come however, until the moving averages are taken back and MACD’s trigger.  Oh, and it would be good to see silver leading at such time.