Gold and Silver Continue to Pivot

Not much has changed for gold and silver this week as the U.S. trading day begins with gold and silver continuing to pivot around $1,200.00 and $16.00, but currently below those levels. With growing concerns over the possible default and exit from the Euro by Greece along with increased tension in the Middle East as U.S. and coalition warships track Iranian boats suspected of carry weapons to Yemen, it is a bit surprising that gold has not performed better and broken through resistance above $1,210.00.

On the flip side, we have a market that is trading on low volume, platinum and palladium continue to move lower and this combination is likely to empower short sellers to pressure gold and silver. If the recent pattern continues, we can expect physical demand to pick up and support gold in the low to mid $1,180.00’s while silver could test $15.50.