Gold and silver have fallen after yesterday's gains due to the very poor consumer confidence data and Federal Reserve murmurings of further monetary easing. Gold is trading at USD 1,825.40 and silver is trading at USD 41.61.
Gold and silver are higher this morning with the dollar, the British pound and commodity currencies falling in value. It is too early to tell whether the recent margin driven, paper sell off on the Comex is over but demand remains robust.
Gold and silver are tentatively higher after their 2% and 8% falls yesterday. In silver, speculators on the Comex continue to liquidate on mass after margin was increased a massive 84% and various stop loss levels are hit.
Gold and silver are marginally lower today in all currencies, but recent action suggests we may have seen capitulation and are in the process of bottoming out. Physical demand remains robust as jewelers and investors buy on the dip.
The Commodity Futures Trading Commission on Thursday voted to forward a rule restricting the number of commodity futures and option contracts any investor can hold in metals, energy or agriculture derivatives.
A head and shoulders pattern occurs when a market forms three peaks and the middle peak is noticeably higher than the left and right peaks. However, that is not enough for the pattern to play out as projected in the textbooks.