The Key Numbers – Let’s start with the 200-day moving average, which usually acts as support (or resistance) for gold and silver. Gold did not remain below its 200-DMA, at $1,678, for more than a moment and it quickly bounced back. (As of 5:00 Thursday morning, gold is over $1,700) But that is not surprising. Gold has held firm above its 200-DMA for most of this bull market.
Silver has some work to do yet. Its 200-DMA now stands at $34.82.
$1,700 is an important number for gold as well. Gold dropped below $1,700 for just one day and early this morning was once again ABOVE the key support of $1,700.
For silver, the key support/resistance number is $34. Silver was $34.06 early this morning and rising. We are now back on safer ground, with gold above $1,700 and silver above $34. Let’s see if they hold through the weekend. The bull market in gold and silver are not over – the bullion banks (especially JPMorgan) were desperate to cover their huge short positions. They were scared to death that gold and silver were on the brink of breaking out above $1,800 and $38, which would have propelled their prices much higher. But after just a few days, prices have turned back up.
It’s always the same drill. Gold and silver are hit with “waterfall” drops and the fall is fast and furious, but the gains are slow and methodical. What takes weeks or months to accomplish on the way up is taken away in minutes or days. But they always come creeping back – at least since the onset of the bull market in 2001. (more)
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