A tale of two technical positions

Gold and silver have been consolidating in different fashions. In this article I discuss their relevant technical positions

It’s not just a question of silver’s volatility. When gold is seeking its underlying direction, silver has a nasty habit of declining sharply. This has been such a time. But let’s stand back and look calmy at their relative technical positions.

First, gold. The chart shows gold consolidating at the 55-day moving average level. This looks like a typical pause when prices have got a little ahead of themselves. The underlying bullishness is evident in the sideways consolidation, rather than a deeper pullback which would reflect a greater degree of weak buyers being involved.