PM Daily Market Commentary - 11/26/2013

By davefairtex on Tue, Nov 26, 2013 - 9:57pm

Gold closed down -9.20 to 1241.60 on heavy volume, while silver closed up -0.38 to 19.81 on moderately heavy volume.  The gold silver ratio rose 0.72 to 62.69.  Gold opened up in asia, and then just slowly sold off through the NY open.  Silver did much the same thing, only silver dropped much more on a percentagewise basis.  The lack of follow-through on yesterday's rally was not bullish.

The dollar was off -0.32 [-0.40%] to 80.64, and is starting to approach the USD support level of 80.50.  The buck appears to be forming a descending triangle pattern, with the denouement out about a week in the future.  Normally this would be gold-positive, but at this moment, gold and USD are pretty much trading independently; both gold and the USD were down today, for instance.

GDX dropped -2.43% on moderate volume, while GDXJ dropped -2.02% on moderately heavy volume.  With gold down $10 by the time NY opened, GDX opened low and continued selling off for the remainder of the day.  Neither GDX nor GDXJ made new lows, but much of yesterday's rebound was lost in today's price action.

Gold, silver, and the miners are all looking weak.  Yesterday's rebound was not followed up today at all.  Gold is still managing to hold 1240, but most of the other signals remain bearish.

Downtrend remains in place.  Gold needs to close above 1260 to even start the process of rallying.


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