The relative strength index (RSI) for gold is currently at 21; this level has only been seen seven times over the past decade. Gold returned 10% on average over the next 78 days...
Key resistances need to show signs of a sustained rise for gold and silver to continue. Physical buyers of gold and silver will be using a buy on crash strategy.
Short-covering buying will catapult gold sharply higher. As specs rush to cover or face financial ruin, the much-larger long-side specs will pile on to chase gold’s upside momentum.
As for what the market will do, a tip-off might be if you get above the highs here at 1846.80, it might be the sign that we're finally breaking this bearing pattern.
The market has slipped back now from 2024.80 to 1824.60 — a $200 per ounce drop. That doesn't mean you should expect it to bounce. It's a bearish set up.
