Gold surges higher
Gold recorded a strong session on Friday as it surged above $2,700 for the first time in early trade. It built on these gains later in the day to end at a fresh record close, and on its highs. It added to these gains in early trade this morning. This has been a tremendous move over the last ten sessions from when gold was retesting $2,600 as support. Support held, and thanks to the slow pullback in the gold price from late September to early October, there was a steady decline in the daily MACD which helped form a base for prices to spring higher. Since then, the daily MACD has turned up significantly. But it is still below the overbought levels from late September. That suggests that there could still some room to the upside, particularly if the market experiences an inflow of fresh buying. Some traders may want to hold off, hoping for a pullback to give them a better entry point. Although sometimes these just don’t come when you need them to. Silver surged higher on Friday. Not only did it take out $32 and recent highs around $32.50, but it smashed through $33 and is currently trading at levels last seen just under twelve years ago. Friday’s rally does look a bit overdone. But as talked about recently, when silver gets going, it can experience some extraordinary moves.
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