The PM Sector "Tips It's Hand"Printable Version
It is common for commodities to drop in unison, especially metals and oil, and last night we observed that oil looks set to drop hard soon, which was given added significance by the sharp drop in Precious Metals stocks yesterday, that calls time on the recent gold and silver rally that occurred this year to date. That drop yesterday in the Precious Metals sector, which occurred without a concomitant drop in gold and silver, was the market “tipping its hand” because stocks tend to lead the metals, so we can expect gold and silver to follow suit shortly and drop – along with oil, and copper. On the 6-month chart for gold we can see that the uptrend is weakening, with it taking the form of a bearish Rising Wedge, and as it has now arrived at significant resistance near to its still falling 200-day moving average, and is rather overbought, it is at a good point to turn lower.
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