So it was another week, another attempt lower for the bears. What was the justification? In the Nasdaq it was 60 weeks up off its August 2015 low. For the rest, there was a lesser pivot to end the rally early last November and a lot of these names turned in a 233-day window.
The selling for gold or silver may not be over just yet and the pressure could increase further if market participants grow more confident in foreseeing a rate rise in the United States before the year is out. These buck-denominated and noninterest-bearing assets tend to weaken when yields and the dollar are both rising.
The main story last week in the markets was the flash crash of British pound on Friday. The currency lost 6% in under two minutes at the start of the Asian trading session. There are multiple theories on what sparked the move with algorithmic trading and human error among others. The British pound touched 31-year lows and although it recovered some ground it will close the week under the 1.25 price level.
Investors received an unexpected gift during trading on Tuesday when gold surprising dropped below its psychological support level at $1,300 per ounce. Elsewhere, the British pound has continued to crumble in the early hours of trading on Wednesday with the pound/dollar finding another 30 years plus low below 1.27 at 1.2684.