Gold took a wild ride in the off hours trading dipping to a LOW of $1876.50 before rebounding.
The damage has been done and the market looks to me to need to reset. Any rally is likely to be sold over the next few weeks as trades caught in the recent smack down seek to cover losses.
As is typical in these sort of moves the CME Group has reportedly raised the margin requirements on gold and silver futures contracts.
https://seekingalpha.com/news/3604370-cme-reportedly-raises-gold-silver-futures-margins
Someone just pulled the plug on the futures price of gold and silver.
Silver is still over $25 per ounce BUT with the increase in the margin there may not be enough fuel to drive the prices higher.
The miners are still in correction mode. The best case scenario is that GDX finds a range to trade in for a while.
Other things to pay attention to over the next few weeks.
First, is the US Dollar which is fast approaching long term support levels. If the dollar bounces off support in a convincing fashion then it may signal a serious correction in all assets.
Second, watch the 10 year bond interest rates, if a dollar bounce occurs then interest rates should rise, knocking the crap out of stocks and the metals, as well as cryptos.
Third, watch very carefully TURKEY! TURKEY, really? Yep really! The Turks seem to be hell bent on reestablishing the Ottoman Empire.
The Greeks and the Turks are squaring off in the Mediterranean: https://www.ibtimes.com/greece-condemns-turkish-provocation-maritime-dispute-deepens-3026415
The Turks and the Egyptians are squaring off over Libya: https://www.ibtimes.com/greece-condemns-turkish-provocation-maritime-dispute-deepens-3026415
Power Vacuum in Lebanon: https://www.foxnews.com/world/beirut-explosion-prime-minister-resignations-cabinet-lebanon
Nothing like a good old fashion WAR to kick off a dollar rally and a sudden rise in interest rates.
Just a road map to pay attention to as this year is turning out to be a wild ride.
Peace out and stack on!