A couple of positive in-day indicators for the precious metals sector, pre-FOMC. I guess that could be a caveat that could create volatility, but 94% of CME futures traders expect no change in rate policy today and that’s usually an accurate indicator. The same 94% expect a .25% rate hike at the June FOMC meeting, so that is no surprise either.
So playing it straight by what the market is saying now…
HUI/Gold ratio (HUI/GLD) held the EMA 20 yesterday, and today is popping upward and looking solid. This has remained a good leading indicator to the current sector bounce.
Silver/Gold (SLV/GLD) corrected the big burst from a couple of weeks ago and today is reclaiming the 50 day moving average and breaking a flag to the upside.
If these continue on to remain positive, they are obviously positive short-term indicators for the whole of the precious metals sector.