Gold holding above $2,400

Precious metals had a solid session yesterday. Gold prices began to push steadily higher during Asian Pacific trading, setting the base for a surge back above $2,400 mid-morning. It has managed to build on, and hold, these gains this morning. The bulls will be hoping that there won’t be another sudden price plunge. These are now regular monthly occurrences which have come close to derailing the rally since they began in April. They may get their wish, as the sell-off earlier this week could count as the August attempt to destroy the longs. The chart looks quite constructive for the bulls, who will be hoping that gold can hang on to gains, and that any selling will find solid support at $2,400. Silver, as ever, looks more precarious. Yesterday’s rally was helpful, as it took prices back above $27 per ounce. But silver continues to struggle to push much higher, and it really needs to get back above $30 to reignite interest. In the meantime, it remains very oversold.