5/26/2016. With the UK closed this coming Monday for a bank holiday and the US heading into a three day weekend for Memorial Day, the markets are likely to finish out this week quietly.  The USD has finally started to back off its recent highs with the USD index trading lower for the second day in a row.  This has not translated into a sustained rally in gold though, participants still view this as a “sell rally” type market right now.  This was exhibited overnight with gold breaking briefly above $1,230 only to find selling pressure to push it back down to the $1,220’s for the remainder of the US trading day.  There is a double bottom of support at $1,218 from the past two days with more major support right below at the 100 day moving average of $1,215.50.   Silver also failed to sustain gains overnight and trended lower during the US session.  It closed under its 50 day moving average yet again and $16 is likely the next downside target.