Gold and silver prices this morning in pre-market
The gold price found the first support level and is bouncing from it. The allowance for a normal correction was to around the SMA 200 (1782). Next step to the upside would be to test and take out the 1875 area, which includes visual resistance and the 50 day moving average. As an FYI gold made a 38% Fib retrace, FWIW.
Silver’s Fib retrace is worth something, I think. It Fib’d a full 62% to a clear support area and the SMA 200, becoming oversold. Recall our target to keep things “normal” was 21 to 20.50. It doinked 20.50 on the nose and is trying (trying, mind you) to take back the SMA 200. Let’s watch silver closely. It has done the work and now would be an opportune time to resume upward.
As for the miners, while HUI did not quite get to the 200-206 support zone (low of 210) it, GDX, GDXJ, XAU, etc. have all retaken their 200 day moving averages. The HUI/Gold ratio has made a short-term upturn and if that keeps going and the miners continue to hold the SMA 200s, we could be looking at the end of the correction. If that is the case we’d be looking new highs to the January highs and macro willing, an eventual target of 500 on HUI.