Now that both gold and silver broke well below key fibonacci levels following the jump in global bond yields, the selloff could accelerate depending on the extent, which stocks correct. We have learned this year, each time indices fall by more than 1%, metals move lower as asset managers liquidate long metals positions to stabilize their portfolios. We know the #1 economic priority (not an exageration) of the US administration is to stabilise bond yields in order to cap the interest rate on servicing the ballooning US debt. Gold and silver need to save the immediate support of 4500/oz and 75.40s/oz . The 23.6% retracement follow at $4450/oz and $73/oz respectively. Keep an eye on 10 year US bond yields, especially the possibility of a breakout of the wedge, which could trigger 5.0% in a swift manner. The market consequences of such an event would be cataclysmic.

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Here is how we went short and long silver by combining 3 different approaches of technical analysis. All 3 approaches highlighted the importance of 84.00 /oz as a key support (confluence of trendline support, 38% fibonacci and prev resistance turned support).

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Here is a quick video explaining how to hedge oil with gold. Considering the clearly inverse correlation between gold and oil (-0.70 over 20-day basis), if you buy both gold and oil, or sell both within a predefined ranges, it could work out well. Watch.

Gold is back retesting that $4670/80 level, representing the 38% fibonacci retracement, covered in that Fibonacci video 3 weeks ago. This time, however, the level, becomes a resistance rather than support. Note how silver is also facing a key 38% retracement level around 84.00. It is common to see silver falling behind gold, or gold leading silver. If more optimism emerges and metals push higher alongside further USD weakness, then silver's path above 80 will imply a decline in the gold/silver ratio. Watch whether gold closes the NY session above $4680/90, in which case silver will need to confirm with a break above 80 in Thursday Asia or Thursday Europe session.  For those trading gold, 4720 follows as the immediate resistance, a break oif which paves the way for 4770.  

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The importance of $87000 in Bitcoin recoveries and the High-to-Low cycle characteristics of Bitcoin. Watch here.

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