Gold, silver reverses course on the day to show decrease

Gold is now dropping to just under $4,100 with the high earlier in the day touching $4,179 while silver is down over 2% on the day to near $51 after having hit a high of $53.60 earlier. It’s a quick and steep drop for both precious metals in the past hour or so with not too much of a catalyst so to speak.

The broader market mood remains on the defensive, so I’d be more inclined to lean towards profit-taking activity here. And even with the selloff above, it’s not really hurting the precious metals all too much. Both are still up roughly 2% on the week, at least for now. However, the drop perhaps does put some attention to the near-term charts though there is still some distance from testing the key hourly moving averages for both.