Two days ago Gold was poised to break above USD1760/oz and silver looked positive to breach USD19/oz, they both touched those levels briefly. Everything changed so quickly in two days. Overnight Tuesday Gold had to defend USD1730 and last night it dipped from USD1730 to USD1695 within minutes , silver also broke below USD18 last night. Tonight Gold would have to defend USD1700 level failing which USD1680 is the all important strong support. Silver looks like visiting USD17.50 which must hold.
And on both days the USD was relatively weak, so when measured against AUD , Gold and Silver were even weaker.
I noticed that it was the substantially better than expected ADP report which spurred the market and caused gold to fall.
In the short term, the economic outcomes have been more or less in line with expectations and the markets are taking them in good strides.
In the longer run, precious metals would have substantial room to run but the massive protest problem in US is putting the US-China dispute on cold ice as POTUS cannot afford another issue to add to his misery. In absence of that catalyst, interest in precious metal is waning at present.
S&P500 is reaching 3150 soon at which point I believe we are due for a reversal as the market is overbought. Likewise XJO briefly crossing 6000 is a signal we may be reaching a near top.
It is a wonder if the markets will embrace an orderly correction from present levels and how recent new retailers will react.
