2.14.2017 With the USD on the offensive and the Dow Jones reaching all-time highs yet again, the precious metals slid lower to kick off the week.  Trading conditions were muted and gold managed to hold above its 100 day moving average at $1,220 for the second day in a row.  This is clearly the short term level to watch and a break below it could lead to a swift move down to psychological support at $1,200.  While US equities keep ripping higher, there is clearly some anxiety in the market as investors continue to add to ETF holdings.  ETFs added 186,000 oz on Friday, the fifth straight day of adding to the position.  Silver had a strong close to last week, finishing above its 100 day moving average at $17.91 and crossing above a five point trendline dating back to the high of $49.80 in 2011.  Technically, it faked out traders though as it backed off its highs today and moved lower with the rest of the precious metals complex.  Its 100 day moving average plus the double top at $18 formed over the last two trading days are now imposing overhead resistance levels.  Keep an eye out for FOMC Chair Janet Yellen’s semi-annual report to the Senate tomorrow at 7 AM PT.

Precious metal buyers are taking a good look at silver.