Silver is trading strong here, some shorts are trapped because they entered long wknd short and you can see the pent up energy here. Confirm is gold above $1402, but many will be waiting to see if it closes above there for the day, then you'll have algo buying heavy into the close.
Silver is pulling up gold as I've written about for a few weeks. Afternoon 12 noon will be the defining time period to see what happens next. Stopping out of some of the new longs put on today under $24.42 5 min close
My trades are correlated to watching silver lead gold. The fact that silver couldn't hold above my stop in the last post was indicative that gold wouldn't hold either.
Bulls in my opinion are weak or accumulating. On Friday, there were a lot of players going into the weekend with a short on silver. over the weekend this position went against them and bulls were unable to really stick it to them and push through some levels that were only 10 to 20 cents, which would trigger massive short covering for fast money. Now, the price has been pushed back to the Friday close, letting the shorts off the hook, maybe, emboldening them.
$23.20 seems to be the absolutely low that silver should achieve if bulls are truly in control. Anything below that suggests a bigger correction in the works.
It'll be interesting to see how this plays out, but yes AG has taken the lead every so often in this latest (2 mo) transition.
And if it continues, it bodes well for both.
Last night, the cards were deftly dealt out.