Gold gave back more than half of yesterday's gains as some longs ran for the exits. With the Middle East on the razors edge this week, it's no wonder the yellow metal spiked higher. However, on Friday the energy markets fell from their highs and equities rebounded with a vengeance, which left potential gold buyers with little reason to buy. The recent COT report showed that funds were short 22k positions, so some of the rally this week was likely due to short covering.
Gold is now back in the middle of moving averages and tech indicators are mixed.
Look for two consecutive closes above 279 before buying futures. Considering Middle East tensions could escalate at the drop of a hat, which would likely send energies higher, stocks lower, and gold higher. December Silver . Riding the coattails of gold, silver slid down the slippery slope and into the red today. The trading volume looked low as the market closed at 492.5, down 4.3 cents.