Sellers step in at $2000 gold

The congestion area between $1,980 and $2,000 in the gold market is manifesting as expected. The Gold/Silver ratio is right at support of the triangle presented last week.

A concrete breakdown with conviction would indicate an acceleration in bullish momentum; important to note, however, that the ratio is in an oversold condition, and there is a concrete possibility that the triangle is not done consolidating.

A 3% print on the U.S. 10-year Treasury yield looks to be imminent. However, despite the rapid rise in rates, the ongoing conflict in Europe, and elevated energy costs, major U.S. indices have yet to challenge the winter low. Equity bulls looking to "buy the dip" in indices may finally have their chance.

AAII survey data measuring stock market sentiment ending the week of April 13, looking forward six months, shows that market participants remain heavily historically bearish. To a contrarian, this may add to the weight of evidence suggesting a leg up to the all-time highs is imminent.

Buy 09:40AM EST SPOT GOLD HAD PLUMMETED $16 TO $1,962

KITCO