SILVER and GOLD Retrace Higher to Test Key Short-Term Resistance

Much in the same way the Oil complex found a bid today, the Metals complex moved higher to test some key short-term retracement levels. The southbound moves in Silver and Gold may be overdone and today's activity may simply represent some stale shorts being covered.

On the other hand, the US did lead a multi-national strike on ISIL fighters and their oil installations inside Syria overnight - headline risk that most metals punters would find it difficult to ignore.

Silver traded just above the US$ 17.95 level, representing the 23.6% retracement of the late August's High through yesterday's Low. Here is our Daily chart:

Similarly, Gold traded just above the US$ 1,231.92 level, representing the 76.4% retracement of basically the 2014 range. Here is our Weekly chart:

On the Silver upside, we are keeping our eyes on 18.32, 18.62, 18.91, and 19.18.

On the Gold upside, we are watching 1248.03, 1256.04, and 1262.28.

Today's Silver and Gold video details today's trading action.

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