Gold’s 50 day moving average held as perfect support for five consecutive trading days and helped form the base for gold making three week highs so far this week.  The USD remains weak with the DXY index, a broad-based barometer of USD strength, at lows not seen since August of 2015.  The Japanese Yen continues to dominate FX headlines with the Yen reaching 17 months highs versus the USD.  Crude oil has staged an impressive recovery and is well above $40 again, up over 4.50% today.  This was in spite of the IMF cutting 2016 global growth forecasts from 3.40% to 3.20%.

Since Thursday, silver has rallied nearly 7.5% and today extended gains to reach six month highs.  The move today was even more impressive considering that gold traded predominantly sideways.  After a near vertical trajectory up over the past four days, I would expect to see some profit taking occur in silver.  Resistance is above at the six month high of $16.35 while $16 should prove to be psychological support in the near term.