Silver Succumbs to Gold Weakness

Silver had been managing to hold above $20 today in spite of the Gold weakness until late in the session when gold began sinking even lower and the shares continued to puke. That finally pulled the rug out from underneath it and it became a teenager once again. It had managed to become an adult in early February but could not act its age and decided it liked the "freedom" of having  "teen" in its age.

In looking over its daily chart, the bears are back in control of the market, which is essentially meandering back and forth in a broad range. It is below the 50 day moving average which is bearish but as is the case with any market stuck in a sideways pattern, moving averages are not especially useful in analyzing them.

This is reflected in the ADX line which continues to head lower indicating the lack of a firm trend.

It is going to be interesting to see how gold trades in Asia this evening. Will bargain hunters surface or will they sense lower prices ahead and thus hold their fire to secure the metal at a better price. If the West starts selling gold once again, Asia is going to have to provide whatever price support this market might have.

The Dollar