Recent trading activity indicated that the bankers were back long gold and probably short silver. Gold busted through it’s recent high and yesterday had a perfect backtest to the area of that previous high.

Unless something crazy takes place(Is Xi dead or incapacitated, from the reported stroke?) it is likely that gold trades in a new, smaller range between $2450 and just under $2500.

The big question is of course, silver. While disappointed, I was not surprised it didn’t break above $32.60, yet, because while gold was acting well, silver lagged and showed signs of being capped on most days. It appears that dramatic underperformance by silver may have ended yesterday. It is likely that while gold trades in a narrow range, silver should start to show a bit of relative strength vs gold.

It may take until the FED meeting, on the last day of July, before it has a big breakout move, but hopefully it has some upward probing towards the $32-$32.50 area over these remaining days of the month, as a prelude to that coming breakout.