A pre-market snapshot using daily charts of key items.
Gold continues to dwell in a longer-term resistance zone after holding support yet again. Trends are up and the pattern targets 1940 as long as support holds. The negative divergence could be just that, negative, or it could be refueling the metal from an overbought situation back in February.
Silver is pretty self-explanatory. It is either going to pull back here and do some support testing or it is going to break through and quite possibly, change the macro signaling to inflationary. This is both a potential limit point and gateway to a bullish longer-term view.
Copper has a limit point of its own. It’s not a gateway because of the multiple levels of resistance it would have to clear in order to go bullish. As noted in a public post, the potential limits are here at 2.50, the SMA 200 at 2.55 and the next resistance level at 2.62.
DXY has dropped to its last ditch support level that is the only thing standing in the way between here and a potential waterfall to the low-mid 90s. It has head faked corrections before, but it needs to hold this support at 97.65 or else it would appear to be cooked.
As a chart robot all I can do is offer these snapshots and let them speak for themselves. As a human I can guess along with everyone else what may be in play. But what we can say is that gold is still on track, even as it bides its time, silver is at a limit or a gateway, copper is entering the high risk zones and the USD is in trouble (but at support).
The implication is that many recent market trends are going to either intensify or reverse depending on what the charts above do.
