Gold plunged from the COMEX open yesterday, led lower by silver which has breached the February lows and fallen as low as 26.90 overnight.
Whilst gold is still holding above the February low at 1554 and currently trading around 1567, the sharp declines yesterday and overnight suggest it may follow silver lower, with a retest of 1525 a distinct possibility.
We noted yesterday that the price action since the February 21 low appeared to be corrective, now it seems we are getting another impulse leg lower.
The continued strength in equities and the dollar is pressuring gold and the strength in oil is not serving as support as would be expected.
It does not bode well that the new quarter has started so weakly for the precious metals, as the price action suggests significant long liquidation is taking place.
Today's video for subscribers looks at the price action in both gold and silver and our strategy for our next trade.
Whilst gold is still holding above the February low at 1554 and currently trading around 1567, the sharp declines yesterday and overnight suggest it may follow silver lower, with a retest of 1525 a distinct possibility.
We noted yesterday that the price action since the February 21 low appeared to be corrective, now it seems we are getting another impulse leg lower.
The continued strength in equities and the dollar is pressuring gold and the strength in oil is not serving as support as would be expected.
It does not bode well that the new quarter has started so weakly for the precious metals, as the price action suggests significant long liquidation is taking place.
Today's video for subscribers looks at the price action in both gold and silver and our strategy for our next trade.