The following Precious metals comments were transmitted to Myra P. Saefong, Financial Writer for Marketwatch.com, at 7:40 AM EST
Thursday's Metals comments
DEC GOLD is seeing some follow through from yesterday's rally but there's major trendline resistance which lies just above the current price that the market will have to overcome to turn the short-term trend positive again. Frankly, this rally leaves me unconvinced that we've seen the bottom of the recent decline. I believe that further price deterioration is inevitable and it will take consecutive closes above the 20-day MA (467.80) to change my opinion. We'll likely see the 20-day cross the 50-day MA in the next day or two and that would not bode well for Gold in the near-term.
Silver looks far more favorable technically and we may actually see a divergence between Gold and Silver where Silver is able to continue its upward momentum in the face of a continued decline in Gold. Considering that Silver has lagged Gold's performance by a large margin, a divergence in prices would not be surprising.
Copper continues to trade sideways and the longer this occurs the more traders will wonder if the market trend has entered the transition from up to down. It's way too early to speculate but the longer the market fails to make further gains the better the chance becomes that this market will suffer a serious setback.
Dale F. Doelliing
Chief Market Technician
Trends In Commodities
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