With today’s sharp drop in bonds, equities and metals with the strong jobs data report, an intra-day alert to allow for some better idea of where to find the next major support area on gold and silver shares are shown below. From the HUI and XAU charts, we can clearly see important supports that are just several percent now below current levels. It is expected now that by early next week, a test and bounce off these points will occur.
The points we are observing very closely is around 160 HUI and 75 XAU. There will be much more this weekend in our May Newsletter. COT reports will be released in about an hour and will be posted promptly on GoldSeek.com and SilverSeek.com.
XAU Index paints a similar picture. I am not in the opinion gold will be pushed much lower at this point yet the question regarding an immediate downside risk to general equity markets remain. Yet, at these levels, risk/reward looks extremely favorable!
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