Resource Investor: Gold moved lower once again [on Thursday, but basically it didn’t do anything on Friday] but still not low enough to break below the rising support line. Gold is still outperforming silver and mining stocks (taking this month into account), but now the extent of the outperformance is much smaller. Still, with the situation in Ukraine still being tense, gold might hold up relatively well even if the rest of the precious metals sector declines.
Silver declined more than 5% last week. It moved below the rising support lines and closed there on Friday, which is a bearish indication. The situation in silver is oversold, but only on a short-term basis. Consequently, we could still see a corrective upswing here before the decline continues.
All in all, we can summarize the current situation in the precious metals market in the same way we have been summarizing it for the last couple of days:
It seems that the precious metals sector will move lower in the coming weeks, but just in case the situation in Ukraine deteriorates, we are keeping half of the long-term investment position in gold. In fact, gold has been outperforming both silver and mining stocks since Russian troops entered Crimea.
Take a look at the analytical charts on resourceinvestor.com