Weak US Core Durable Goods Orders today caused the USD to lose ground against a basket of currencies. The lower USD and depressed treasury yields, combined with a falling stock market, ultimately translated to gold gaining 2%. Traders who had positioned themselves short were caught off guard and had to cover positions as gold surged. Near term resistance is coming in at $1,170, the high from August, while bids will now likely materialize around $1,140. Silver piggy backed on gold’s coattails today and has significant resistance looming overhead at the 50 day moving average of $15.52.
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Chief Market Analyst, ITM Trading