Like gold, silver has fallen sharply in the U.S. dollar’s slipstream. From a high of around $17.30 in June, the precious metal has fallen to a low so far of $15.20. The $2.10 slide might not sound much in nominal terms but represents a sizeable 12.1% decline in percentage terms. Sentiment towards both precious metals are very bearish at the moment.
As expected, gold made nice three waves of correction back to projected 1250 support level, but there can be room for deeper and more complex correction down to around 61,8% Fib. retracement and 1245 level.
With much of the attention on Bitcoin becoming a potential replacement for gold (which we don’t agree with) silver has been almost forgotten. The grey precious metal has been trading inside a very narrow range with no clear directional bias for a very long time now.
Gold, silver, and mining stocks moved higher once again yesterday and the former even managed to move above the declining trend channel. Breakouts are bullish and thus the outlook for gold improved significantly… Or did it? Gold’s price in terms of the euro and gold’s relative performance to silver and mining stocks make replying to the above question quite easily.