The precious metals markets await the conclusion of negotiations for another round of the "stimulus package" game.
If there is a deal then gold has the potential to lift off. If there is no deal the gold is likely to tank. Today we saw mostly sideways action with a slight gain in the metals.
On the positive side, gold traded above the 18 day moving average. The stochastic, however, is pointing down indicating waning momentum. Also of note is that the Bollinger bands are beginning to tighten up and run parallel to each other, another indication that gold is waiting for a decision on the stimulus package.
Silver also posted a gain for the day and is looking stronger than gold at this time. Silver closed above the 18 day moving average and the stochastic is positive. Resistance is at the upper Bollinger band at $25.35 per ounce.
GDX, an ETF of mining shares, is drifting lower. The close came in just below the 18 day moving average, which I read as a neutral at this point. The stochastic is definitely pointing down show a lack of enthusiasm for the miners.
All of this could change once there is a final decision on the stimulus package.
As I see it all comes down to "Deal or No Deal"!
How do you see it?
Peace out and stack on!