The move to 3.5 month highs was by and large due to short covering and not fresh buying. The USD and equities were lower to mixed today, providing little stimulus for gold. August gold opened a bit higher and finished the day at 288.1, up 10 cents. There doesn't seem to be much catalyst for a move to fresh lows or highs, therefore, I see the market vacillating. I wouldn't want to take a stand on this one until consecutive closes over resistance of 294.5, or below support at 285.2.
Silver continues to trail the yellow metal.
Throughout June silver has been mostly range bound and now prices are near the bottom of that range. July Silver closed today at 503.5 -.8 cents. Prices still look like a choppy mess to me, and I have had a slightly bearish bias. Technical indicators are now headed lower and the market closed below moving averages. The inverted head and shoulders formation is only relevant on consecutive closes above the 515 area, otherwise it's just another mirage.