Silver was the out-performer in the precious metals sector today, overcoming early weakness (traded as low as 22.06) and closing up 0.31% at 22.62. Gold was not so fortunate; closing the session down 0.57% to finish at 1384 (although it did trade as low as 1368 at one point). The choppy trading in oil continued as buyers stepped in to take advantage of an early sell off during the European session near the 94.40 area which helped the commodity drift higher the rest of the day to close up 0.89% at 95.17.
From a technical perspective, the ability of silver and gold to hold onto previous lows (thus far) is impressive but the precious metals bulls have a lot of work to do in order to turn the trend from bearish to neutral. Short term moving averages on the daily charts remain bearish for both gold and silver, with price below both the 9 and 20 dma’s. Dropping down to the 60min charts, we can see the RSI (14) is still failing to make any headway above the 60 area which confirms the bearish range between 20 and 60 is still intact. Until the short term time frames can gather enough momentum to confirm a bullish shift, a “sell the rally” mentality could continue to limit advances.