by Alasdair MacLeod
The consolidation of June’s price rises for gold and silver continues.
Predictably, technical analysts are now talking prices down, expecting gold to test the 55-day moving average currently at $1280, and possibly the 200-day MA, which is at $1195. Last night (Thursday) gold closed at $1333 and silver at $19.80.
We shall see. There is no doubt that technically both metals are showing up as very overbought, and vulnerable to a significant correction. Furthermore, the Managed Money category on Comex shows record long positions, and is vulnerable to a shake-out. No wonder technical analysts have turned.
Truth to tell, they got it wrong on the way up, and only changed their minds when uptrends for gold and silver were firmly in place.