Tuesday was very lively for precious metals. Following minor correction on Friday and some indecisiveness on Monday both Gold and Silver prices tumbled on Tuesday. While there’s no single catalyst, it seemed like buoyant sentiment on indices provoked profit taking that turned into a massive sell-off.
Silver prices tumbled by as much as 16% on Tuesday, erasing the latest stage of the rally. Do notice that the price is still above moving averages. Doji candle suggests lack of direction but there’s plenty of time for this candle to change today.
Gold also saw steep declines and tanked below 2011 highs, right into moving averages. This is technically an interesting point where bulls could try and resume upwards trend.