Dear CIGAs,

The HUI has run into selling pressure centered near the 450 level and has retraced some ground finding support above the former late May/ early June top at 405. There looks to be stronger support near the 376 level should that not hold. As I write this the HUI is well off its session low and actually performing quite well technically. That top near 405 was a formidable barrier to upward progress for some time and sure does seem to now be working as very good support.

The blip in the Dollar is associated with its severely oversold status in front of the upcoming FOMC meeting this week. That led to some further selling at the Comex as just about every commodity across the board was sold since the hedgie algorithms commanded their servants (that would be the carbon-based humanoids called hedge fund managers) to sell “things” when the Dollar bounced. Once the Dollar moves lower, the same servants will be dutifully buying back more “things” once again. (My aren’t they a clever bunch).

Silver has put in one impressive bounce off its worst levels and is trading back above the 10 day moving average. Gains in tomorrow’s session would embolden bulls and unnerve weak-handed shorts. We will have to wait and see what the sentiment is towards the greenback tomorrow.

Click chart to enlarge today’s hourly action in Gold in PDF format with commentary from Trader Dan Norcini