Welcome to the Cyber Monday Market Update. After precious metals buyers had their own Black Friday sales rush on mostly technical trading to close last week, the market looks to see if the momentum will carry over the weekend to today. Some experts say that the recent upward trading over the last week is starting to point towards October’s sell-off as a market correction consolidating September’s gains, and that $1,800/oz is the next near-term target.
Bulls do seem to have both the short and long term advantage, with recent “buy the dip” behavior acting to limit near-term downsides. However, there are some moderating influences – the EU has still not come to an agreement on the latest bailout of Greek economy, and the “Fiscal Cliff’ talks in the U.S. will move into the spotlight as Congress returns from Thanksgiving break. The U.S. dollar is seeing mild strengthening, which will also moderate the upside.
With all the focus on gold, it’s easy to overlook the fact that silver is outperforming gold percentage-wise during this upturn. This morning, both gold and silver are trading around Friday’s close as we await the latest National Activity Index numbers and the Texas Manufacturing Outlook results.