CROSSROAD (?)

USD boosted against majors even after spending cut.

DOW and S&P covered sharply from low on Friday and settled near the day high and specially DOW spot at 14089.66, just few point lower of all time high settlement of 14093.08.

Possibly we can see some interesting movement in coming days as major indices, precious and currencies are in crossroad.

GOLD & SILVER:

GOLD was facing selling pressure before last week, slips to $1554.6, and settled at $1575.7 near 2012 lowest close of $1564.5. It is below the secondary bearish channel but for last two weeks it was holding sideways, holding above a critical and major sup area of $1500-$1522.

Open interest reduced last week.

SILVER movement alike gold, here within a secondary bearish channel and on week formed a dozi at  channel sup, although taken out a long trend line sup @30$ area but holding above  strong sup area holding from 2011 is 26$, which is 50% retracement of 1995-2001 low and 2011 high which was a retest of record high.

Seems a half round above $26 has done on weekly settlement basis, to watch if can complete.

Any convincing breakout of critical and major sup areas for gold below $1500/1530 and silver $26, can be damaging for midterm.

ECB, BoE , BoJ rate decisions, China reports and US unemployment rate, nonfarm including some other economical report will bring volatility and direction next week after US declares of spending cut.

Major indices DOW and S&P on record high area while gold and silver holding on major sup for retracement hits all time high. 

(chart 3: long term chart on DOW spot vs gold spot and S&P spot vs gold spot)

Growth, risk, investment and hedge. Currency, Commodity, Indices(equity) .....  choice is ones own. 

(chart 4: gold spot and DOW spot vs USD index)

NB: market is typically volatile, but market do the logical only. foreseeing the unforseen realy need to maintain stop always as it carries risk.