Silver posted today an outside spinning top after a relentless 3 month rally higher.
The Gold silver ratio reversed lower last month from an almost all time record high (above 93).
Gold finally broke out higher from multi-year resistance, and that has certainly caught the market’s attention. Attempts have been made to explain this move, but what are really the factors that move Gold – both in the short term as well as the long term?
Gold squeezed shorts post FOMC decision today into the pit close, leaving the instrument at key resistance at the 1360 level.
Gold has spent the last 2 months consolidating within a flat bottom triangle.
Gold has spent the last couple of weeks consolidating its gains in what looks like a bull flag.
During the past few years there has been a good correlation between the Gold and CNH. The Chinese Yuan has been a good proxy for US Dollar relative performance and risk on / risk off flows. As the Dollar strengthens, USDCNH naturally rises and vice versa.
Both popular precious metals (gold and silver) posted key reversal days today.