Gold and silver were showing significant price strength in New York trading on Friday, as can be seen from the 2 Kitco charts below:
This move appears to have negated the Head & Shoulders formation that I had thought might form in the daily gold chart:
This was a costly mistake as I had traded out of a small speculative gold position, and I wasn't quick enough to buy below the 1390 level last night during NY trading. Not too sure whether a short-term top is near though, as the momentum indicators in the chart above are not at oversold levels yet.
On the macroeconomic front, the ECB's backdoor QE programme appears to be winning approval from the stock market, even though it is sign that the EU's debt problems are too serious to be solve with austerity alone. On the US side, the bad unemployment numbers also did not appear to have discouraged the bulls.
To me, this is a very confusing market environment.
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