Gold at support, Silver selling from resistance
The PBOC infuses 174 Billion into the Chinese system, equities rally and metals sell off a small amount. As we take a closer look Gold has found support and should be headed back to the 1600 level based on April futures and Silver looks like it’s headed back to the 17.50 level based on March futures.
The markets are acting as they should after last Friday’s sell off. A dead cat bounce in equities and some selling pressure in the metals. The price action looks healthy in gold and weak in silver leading us to believe the recent price action should continue.
Silver has been weak since late December and will probably test the December lows while gold has been strong and should test the December highs. We continue to be long gold and short silver. We will remain in these positions until price suggests a change, which doesn’t appear to be happening anytime soon