Gold’s Short Term Picture Neutral

It’s probable that markets of all stripes will have an eye on the employment data being released Friday morning at 7:30 CST. Reaction to the report is often volatile, but sometimes the market quickly cools down.

Gold continues in a trading range, with all the action so far this week contained in Friday’s large range. Although the long-term trends are still pointing south, the short-term picture could not be more neutral. I continue to see a close above 1104.90 (December contract) as a strong bullish sign, and a penetration of Friday’s low of 1079.2 as a sign that new lows are likely.

Yesterday, Silver came within 1.5 cents of the low for this move, as suggested by Monday’s commentary. The close showed some strength, however, and it is holding up well this morning. I continue to consider a penetration of Friday’s high of 14.970 (September) as a strong bullish sign, but another test of recent lows cannot be ruled out.

Platinum tested the 946.30 low yesterday, as suggested on Monday. It actually penetrated that low slightly, but closed in the upper part of the day’s range. The market today is quietly lower, and new lows seem probable. A close above Tuesday’s high of 956.80 (October) will be an early signal for higher prices.

Palladium covered a lot of ground on Monday, taking out a few recent highs and making new lows for this move as well, settling somewhat lower for the day. It’s quiet and close to unchanged as I write this, and I see little reason not to look for lower prices. A close above 604.00 later this week would put that forecast in doubt.