Precious Metals Short-Term Bias Higher As Silver Leads

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Dollar weakness is powering the precious metals sector higher as Silver and the miners lead. Last week, the GDX advance decline line cemented a positive divergence. There have been four other positive divergences in the last 7 years and all resulted in big rallies.

Silver cleared $24.50 resistance and should test $26. Meanwhile, Gold will test $1985-$2000 resistance. The Gold/Silver ratio is breaking down in favor of Silver. Gold needs to show more relative strength outside of dollar weakness.

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