Both gold and silver spiked higher today but retreated sharply since then, apparently on profit taking. The consolidations are set for some consolidations. But there is no evidence for a deeper pull-back yet.
Gold reaches new record high of 1981.16 but it’s now back below 1940. 100% projection of 1451.16 to 1747.75 from 1670.66 at 1967.25 is already met. Some consolidations is likely considering overbought condition, as seen in daily MACD. But recent up trend would resume sooner rather than later as long as 1899.51 support holds, which is close to 1900 handle. We’d maintain that 261.8% projection of 1046.37 to 1375.17 from 1160.17 at 2020.96 is the key resistance which might trigger a deeper correction.
Silver also in steep retreat as spiking to 26.20. The risk of a deeper correction in higher in Silver as it just breached a long term fibonacci resistance level. That is 38.2% retracement of 49.78 to 11.25 at 25.96. Nevertheless, break of 22.24 support is still need to indicate short term topping first. Otherwise, recent rally is still in favor to resume sooner rather than later.
