07 January 2015

Gold Daily and Silver Weekly Charts - Gold Capped at the 100 DMA (Again)

Gold took a pause today, with silver holding its level a bit better.

So far the 100 DMA is holding gold down firmly in place, as the 130 day moving average is holding up the SP 500.  That 100 DMA is a mark watched by many traders, so this may just be a technical reaction to a short term overbought market.
The silver strength was a bit reassuring, but the price moves in the precious metals through Monday should tell us the real story.

We paid $1.73 for gasoline today at a Costco. That seems a bit unnatural, but enjoy it while you can. 

I think it does help to demonstrate how artificial the $4.00+ prices had been.

I think long oil might be a good play sometime this year. I would imagine it will show up in time for the Summer driving season, but let's wait for the market to tell us.

Have a pleasant evening.