Market the last few days
Since our last market update, compared to the previous 15 days, it appears that the metals have cooled a bit. The reaction to the rate hike by the Fed was well received by the markets and the reaction was as expected, a move higher, then a move lower and then higher again. The normal scenario would be for gold to continue to move higher, but in any healthy market a pullback is expected. Since the move, gold has reached a high of $2673.35 and a low of $2601.76, with a range of $71.59. Silver has reached a high of $32.96 and a low of $30.12, with a range of $2.84.
Projections
It is easy to get caught up in the excitement of a fast-moving market, especially when the move is to the upside and many people may lose interest because it has settled down a bit. For all traders and retail investors, it is very important to remember that a market that moves in a straight line in either direction usually pulls back just as quickly. Any pullback or correction is a welcome sign of a healthy market move. With the escalating war in the Middle East, this market can easily move on a dime in either direction. In our opinion, it would not be advisable to go short in this market. From a technical point of view, we see support for gold at the $2642 level and resistance at $2670. As for silver, support appears to be at $31.00 and resistance at $31.50.
Josh Perez
Managing Director
Aurica Canada