3 Amigos: Gold, Silver & Copper

Gold: counter-cyclical, risk ‘off’ qualities, defensive w/ some inflation sensitivity.

Silver: cross dresses between counter-cyclical and cyclical, more offensive within the PMs, inflation sensitive.

Copper: cyclical and sensitive to cyclical inflation/reflation (i.e. an inflation-fueled economy).

Gold price futures are still holding the 50 day moving average and still negatively diverging on RSI, which may mean something negative or that it’s simply refueling before renewed upside). The most technical thing going on here is that the pattern has a sleepy and happy face that makes me laugh every time I look at it. Oh look, it’s so cute and content.

gold price

Silver took a normal test of the SMA 200. From yesterday’s NFTRH update:

Silver is in an unpleasant short-term pattern and today has begun testing the SMA 200, and that is a good thing. Better support is at the up sloping SMA 50, which is rising to meet lateral support. That pattern measures to around 16, which would be registered while ultimately holding the SMA 50.

It’s tentatively back above the 17.45 support level but entirely capable of testing the SMA 50 and/or 16. The latter needs to hold firm or silver would be a concern, technically.

silver

Copper has reversed from its break above resistance at 2.62 (who’s surprised?) but is testing its SMA 200 as well. It’s far from proven bullish but it’s also still intact to its rally.

copper

And there you have the status of the 3 Amigos of the metallic macro.

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