Gold And Silver Unusual Gapping
Gaps in highly liquid markets are like magnets. Traders know they are more often than not closed in a short period and so they often don't join the trend until it is cleared.
There is developing an unusual technical behavior in both gold and silver charts. First, they were able to hold the gap-up for 5 trading session. Today only silver was capable of closing the gap-up started on 4th of September. Gold still has one dollar gap to close which I expect to happen probably tomorrow.
But more importantly, on Monday gold and silver has done the opposite move and created a gap to the downside of almost the same size. This may become a bullish technical factor for both metals as it will attract the speculators to close the gap and move the price higher. The important thing is to see if gold is able to close the earlier gap-up first before moving up in price again.