Gold has staged a strong up day to 1700. The unit has broken the 31.8% Fibo at 1684 and the previous weekly high at 1694. The closest resistance is 1704, the former August low/ September pivot. The move in Gold is bullish with 1729 the 50% of our two month range a target on a break of 1704.
Silver opened higher at 31.70/31.75, reaching an intraday low of 31.35/31.40 as equities opened lower and base metals declined. Shrugging off this early loss as gold and crude made strong gains with base metals attempting a come back, buyers bid silver strongly higher eventually reaching its intraday high of 33.30/33.35 mid day. The metal soon ended the session at 33.10/33.15.
Silver has broken above key resistance levels to 33.09. The close above previous weekly high and Fibo level is bullish. If the market can sustain these higher levels then the next Fibo target is the 50% level at 35.14. The Gold Silver ratio is lower today to 51.34. The ratio is at the lower end of its 6 week trading range. Another leg lower would take the ratio to 50.02 which is the 50% of our 1 year range.
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