From bullish to brutal in less than 24 hours. Here’s an update on the price moves in gold, silver, platinum, palladium, and a few other markets…
Silver has had it worse than gold:
Silver has momentarily lost $17, is down 2% on the day, and the silver price is down from $17.50 just 24 hours ago.
However, gold has indeed felt the brunt over the last 24 hours:
While the pressure was equally brutal yesterday, the pressure has been not as harsh on gold as it has been on silver.
This makes sense, because we have seen huge sell orders on gold recently, and silver led gold in performance just two weeks ago. That is one of the key signals we have been looking for all year.
Regardless, the selling pressure has been constant:
But such pressure on gold and silver is not met by an equal rise in the US dollar:
This is not all bad news, because it presents a window of opportunity as the smashing shows just how much of a farce these markets are when the hammer is brought. Furthermore, this is also a sign that this pressure might be short lived when comparing the last 24 hours to a US dollar that is less than impressive.
The gold to silver ratio has moved back up on the day:
Which would be expected after falling for so many days in a row.
Platinum or palladium have felt the pressure too:
But platinum and palladium have not come under quite the heavy-handed selling today. Yesterday was brutal, but today, not so much.
Then, well, there’s this:
Dow 23,000. Que the President:
— Donald J. Trump (@realDonaldTrump) October 17, 2017
Though the fundamentals are absolutely horrendous for risk assets and bullish for gold and silver. As we said yesterday:
On the fundamental side, Europe is a mess. Italian banks are struggling, Australia just elected the world’s youngest leader, Catalonia and Spain are in a good old Mexican standoff, the UK just wants to be friends with the EU as May engages on the most drawn-out break-up ever, and Greece is going to need another bail-out.
Back home, California has been burning to the ground, Puerto Rico is still in the dark, Texas, Florida and many other states in rebuild mode from multiple hurricanes.
Geo-politically, China will most likely re-elect Xi Jinping as the Communist Party Congress convenes in two days and last for the next two weeks. Iran and North Korea are facing an ever increasing war-mongering Donald Trump (who saw a massive spike in the number of bombs dropped on enemies last month), and somehow it is all a bit too much so Russia has to take a back seat again.