NFTRH+; Gold and Silver, daily chart technical status (& HUI discussion)

Gold and silver have dropped to viable support levels

Gold has barely touched the top side of the 1780 to 1810 zone before bouncing a bit. While this is viable support, we can also keep in mind the daily SMA 200 at 1782, as originally planned.

gold futures price

Silver has put on a good poke into the 20.50-21 zone. This was the preferred pullback area, to the SMA 200, which the silver price is a tick below. If it does not hold this support 19.50 would probably be up next. That could match USD at its 106+ target. Open minds.

silver futures price

Risk/reward has improved significantly in the precious metals complex (including miners) since January. The metals have dropped to valid support levels while the miners have dropped a bit lower than the “normal” support originally envisioned (HUI 230 with an extreme allowance to 220, vs. current price of 216). HUI ticked a low of 210.67 a couple days ago before bouncing. Recall that we are looking for support in the 200-206 range as the next key area. That may or may not be tested, but I would be prepared for it.

Meanwhile, the macro fundamentals remain mixed (ref. NFTRH 746) and there is work to do there before we can flip back to positive. So I think it is best to view the PM complex with a “show me” attitude if trying to pinpoint a bottom.