Gold, Silver Stall As Equities Rally Big
Both gold and silver stalled onTuesday. Was it because the equities rallied big or was it because they wereboth at resistance? From a technical perspective, they were both at resistance.It's that simple.
The metals have had a nice runfrom the recent lows and it should be no surprise that a slight pause or someselling pressure would come in at these resistance levels. All markets do thesame thing on a regular basis as patterns repeat over and over again fromdifferent levels.
We look at this small sell-off asanother buying opportunity, expecting $1,220 in gold to be support and hold.Gold has broken out of the $1,180-$1,220 range and will now do battle aroundthe $1,240 level. Silver is fighting to breakout above $14.80-$15. We expectboth to breakout to the upside after consolidating at their current levels.
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