The precious metals complex has established a floor of support over the past five months. For Gold it is around $1150/oz and for Silver it is around $15.50/oz.
Both Silver and the gold stocks rebounded off their 50-day moving averages only to do a 180 the following day. Meanwhile Gold has given back most of its January gains.
Given that Gold is priced in US$ and that Gold has shown strength in real terms, sustained US$ weakness could be a major boon for Gold and precious metals as a whole.
They’ve been in a bear market for more than three and a half years and in terms of price are very close to matching the worst bear market of all 1996-2000.
