Test of Gold’s Friday Low Possible

by Peter Aan

On Friday, Gold penetrated the July 20 low, but buyers lifted the market off of its low, and that buying pressure spilled over into today’s session, but then selling returned. Bottom line? A test of Friday’s low seems probable. A close today in the upper part of the range would put that forecast in doubt.

Recent action in Silver is similar to Gold. A test of the recent low is the most obvious scenario.

Platinum continues to consolidate on a short-term basis. A penetration of 999.7 (October contract) is still the number to watch for a signal for higher prices. If Friday’s low of 969.1 is penetrated on a closing basis, we could be in for a test of the July 20 low of 946.3.

Palladium is also treading water on a short-term basis. Continue to watch the 641.5 recent high (September contract) and the 595.0 low for the next clue as to trend direction.

Peter Aan joined Dillon Gage in 1983, and is currently a metals trader for our metals division. He is the author of numerous articles for Futures magazine and Stocks and Commodities magazine. He is the author of The Relative Strength Index: A Comprehensive Research Report and a co-author of Trading Tactics: A Livestock Futures Anthology, published by the Chicago Mercantile Exchange.