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Fading Greenback Boosts Silver Over Gold

PRECIOUS METALS
  • Precious metals benefiting from the pullback in the USD (not initially triggered by, but helped by the soft MNI Chicago PMI) and helping the spot gold price spill above any resistance at the 1968.2 100-dma, after markets found solid support at the 50-dma equivalent of 1946.6.
  • The 50% retracement for the April - June downleg has provided resistance successfully on a number of occasions earlier this month, and crosses at 1978.1. A close above here would be significant for bulls, opening 1987.5 horizontal resistance before levels not seen since mid-May.
  • After a sharp rally last Thursday, the gold/silver ratio is correcting lower as silver outperforms - spot is back above $24.50 but needs to top $25.15 before the short-term outlook looks more stable.

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