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Have Gold and Silver Run Out of Sellers?

Rod David

The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.

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Today's Highlight: Silver outperforming gold recently became much more pronounced Friday, as silver barely probed a fresh low while gold could hardly stop. One more retest of their lows would be ideal for forming a bottom.

Dollar Basket
Jun Contract DX; (UUP), (UDN)
Friday's fresh high up to 83.60 spent the afternoon ranging around Thursday's 83.43 high, so essentially still testing the rally's 83.33 target without exceeding it enough for higher targets to be put into play.

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Jun Contract EC; (FXE)
Perhaps it was only a warning shot across the bow, but Friday's open gapped up and away from the decline's 1.2955-1.3020 target that was tested during the two prior sessions. A reversal back down filled the gap from Thursday's close and dipped back into 1.2955-1.3020. No lower target was put into play.

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Aug Contract GC; (GLD)
An overnight spike down to 1179.40 bounced $20 before reversing into Friday's open for testing the actual 1190.00 objective. Its recovery into positive territory above 1212.50 retraced Thursday's last down leg from 1226.50. Back under 1204.50 would target Friday's 1197.40 opening gap down. Closing first above 1232.00 would signal a bigger corrective bounce underway first.

Sep Contract SI; (SLV)
Recent outperformance vs. gold continued Friday, certainly more pronounced as silver surged through 18.88 resistance to 19.55. The bounce still has room up to 20.00 before signaling a bigger rally underway. Back under 19.00 would target a retest of 18.75 before completing a bottom.

30-Year Treasury
Sep Contract US; (TLT)
Poking above 135-00 had not generated enthusiasm for the two prior sessions, and neither did Friday which ranged narrowly. Pre-open action had tested 136-04 and reacted down to 134-20. Any lower low should begin the retest of the prior Friday's 133-12 opening gap.

Crude Oil
Aug Contract CL; (USO)
The rally extended overnight up to 97.80 but only ranged sideways intraday Friday around 97.00. The rally remains intact so long as pullbacks hold any test of 96.00.

Natural Gas
Aug Contract CL; (NYSEARCA:UNG, UNL)
Thursday's test of the 3.55-3.60 target area was extended intraday Friday to test 3.53 before reacting back up to 3.62. Still testing unchanged levels within the 3.55-3.60 area prevented putting into play any lower targets.
Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com.

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