While August gold has managed to maintain yesterday's recovery bounce, the gold market starts Tuesday's trade in the middle of the near-term anticipated trading range of $1950 and $2000.
With the August gold contract falling sharply yesterday, posting a 4-day low early and then mounting an impressive $22 per ounce recovery off the low, the market might have become short-term oversold.
Not surprisingly, the silver market also forged a range-down reversal from the initial low of $0.25. We suspect the ability to reject the early washouts on Monday was primarily the result of a reversal down in the dollar index which by midsession was trading 38 ticks below the early high...[MORE]
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