by Alasdair MacLeod
Gold and silver prices started the week at a low point, with gold touching $1200.
Round numbers such as this can take on an importance for traders. Silver found support at $15.90 before rallying, but on Wednesday, dipped below this level briefly, trading as low as $15.84. So the post-Monday rally in gold was not confirmed by silver, making the consolidation over the week just that, it being too early to say the May sell-off is over.
It is of minor interest that with London closed for a bank holiday, last Monday’s lows were set with reduced physical trading. In theory, this would have left bullion markets more than usually exposed to the vagaries of futures traders, suggesting a degree of artificiality in prices.