May 2, 2017
- Gold and silver currently have a bit of a fundamentally and technically oriented “hangover”.
- Please Double-click to enlarge image below. From a technical perspective, gold is recoiling from the weekly chart downtrend line and a daily chart overbought condition.
- The Stochastics oscillator I use for the daily gold chart is the 14,7,7 series. It’s now at about 32, and decent rallies tend to begin after it’s declined to about 10.
- From a fundamental perspective, gold is in between rate hikes in America. It tends to rally after a rate hike, and be soft before the hike. That’s the case right now.
- The next FOMC meeting is on Wednesday. I expect Janet Yellen will hint that the June rate hike is not a sure thing, and that will do nothing to alleviate the current price softness.