Gold And Silver Update

Above is a daily chart of both gold and silver and as you can see silver has dropped precipitously over the last few weeks.  When we look at gold however, we see a different story.

While silver has gone below the March lows, gold has not. While silver dropped below the previous week's low, gold has not.  Gold is actually still making higher lows and is diverging from silver. In my opinion this could be bullish for gold.

Gold can be doing one of two things right now. Gold might simply be lagging silver and will eventually sell off  or it is possible that gold is being accumulated here. The way I would play it is simply to wait and see if gold can get ABOVE the MAY 10th high which in my view would be a buy signal.  If that does not happen, NO trade should be taken. Lets see how things unfold..