by Alasdair MacLeod
In quiet trading, gold and silver drifted sideways this week in a tight trading range. In European morning trade gold edged up $13 on the week to $1945 while silver fell 4 cents to $28.82. Encouraging this torpor was the dollar, whose trade weighted index rose this month by 2%. Undoubtedly, it will have encouraged hedge funds to buy dollars and short gold. In normal times, bullion bank trading desks would have smashed the price to trigger stops and thereby cover their short positions, which are still extremely costly. This is our next chart.
[…] The talk among some technical traders is that gold and silver are likely to consolidate further. And if gold is to test its 55-day moving average, then the price will probably find support at $1900. This is our next chart.