Gold is now trading near a major support level zone at its 50-day moving average and the 1/3 retracement level of its October low and most recent high. At the same time, the US dollar index is now overbought on the technical analysis charts with its daily stochastic indicator, while being in an intermediate-term downtrend. Silver is pretty much in the same position, trading very closely to gold.
Almost all markets around the world entered an overbought condition two weeks ago. Most are working that off by trading in a very narrow range, as I show in this video with the example of the EWG ETF. The S&P 500 also has support under it with a convergence of its 1/3 retracement level and its 50-day, 150-day, and 200-day moving averages all in the same area.
It looks to me like overall markets are near support, but likely to continue to go sideways this week.
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-Mike
