Thursday saw Gold and Silver under heavy pressure early before a big rally from the lows starting around 10:00 EDT. The rally was no surprise after the selling pressure we have seen over the last couple of weeks.
This action looked like a dead cat bounce from oversold conditions and is probably a selling opportunity. Before we are convinced that the lows are in for this recent move, we expect to see 1280 Gold and 1460 Silver. The churning consolidation should continue until those objectives are met.
Today is Jobs Friday and the data could push the metals in a big way in either direction depending on how the street interprets the news. We will have an answer at 8:30 EDT. We look for some wild trade from the jobs number which could push the metals to support levels, but today is just another footprint and a guide for what’s next.