We can take a minute to say WOW! gold is doing it again. Gold is doing what it is supposed to do in times of uncertainty. The potential for a full-blown trade war is becoming more real every day with the constant talk of more tariffs and retaliatory tariffs. I was impressed to see gold hit and break above the $3,000 mark, but I would expect it to pull back as traders and market participants took some money out at that psychological level. Now that I look at gold, I would like to see the $2975 level hold over the weekend to see another test of $3,000 on Sunday night and Monday. I guess with all that is going on, if we were to break above $2975, we would have strong support at the $2950 level. Although the market has soared and the support/resistance levels are not particularly clear, that is where I would hang my hat.

Silver's ratio has also corrected from 92:1 to 88:1, which is much closer to the 88:1-86:1 norm. That said, silver has also enjoyed the upside along with its big brother, gold. In the bull run, silver broke above $34 and went as high as $34.10 before pulling back, just like gold. I think silver could fall a bit further, even with gold at the $2975 level. Again, I guess with all that is going on, silver should try to hold around $33.50 and then $33.25 with no problems heading into the weekend.

I would suggest keeping an eye on any new talk about the Russia-Ukraine conflict, and any further talk of tariffs between the U.S. and any other country.

Josh Perez

Managing Director

Chief of Global Trading