Following Friday’s big sell-off on the back of the U.S. jobs report, trading resumed yesterday with a bit of short covering and physical demand bringing us a test of $1,175.00 and $16.00 where selling reemerged. With gold and silver entering a new lower trading range, I would expect the “shorts” to keep the pressure on unless we get an unexpected headline. A test of $1,150.00 gold and sub-$15.50 silver, where physical demand should be significant, is likely to spur on a short covering rally. Adding to negative market sentiment we have platinum trading at multi-year lows as it hovers just above $1,150.00.
