Buyers have so far added 1.60% today after we saw a new hold at 979. This level first developed as support back on the 15th March after sellers were defeated. This point set up a new short–term rally. Price was stopped at the key supply area, and once again, we saw a new raid by sellers, taking the price back down to 979.
Overnight, things looked dire for bulls at one stage as the price was hammered through support, hitting 958. The USD was a factor as it climbed, and other precious metals were also in the bid. Momentum returned into the NY session, and buyers flooded back, cancelling out the move lower to re-hold 979 support.
At this stage, we can see not only support but a double bottom and false break. These are bullish signals. Price so far today is also backing up the signals. We want to see the price hold above support and continue to move higher to give these signals confirmation. A break-back below support cancels out the price signals.
If we do see a rally back up to supply and resistance, we would think we could see some seller pressure there. Any new higher lows we want to see from above 979 support to maintain the price signals. Keep an eye on this Friday’s US Employment data as it could have an impact on the USD, which could impact precious metals.