Decline resumes

June gold came within a hair's breadth of its Fibonacci 23.6% retracement level on Thursday and was repelled by its 50-day MA -- both resistance levels indicated in last week's post. The yellow metal appears to be resuming the decline that began on March 17.

GOLD (daily)

Upside: No clear indication, although there is a possibility that MACD will make a bullish crossover.

Resistance: 50-day MA around $941; Fibonacci 23.6% retracement level around $944.

Downside: Gold repelled by 50-day MA and Fib 23.6% level after failing to close above either. RSI flattening out just below 50. MACD-Histogram flattening out just below zero.

Support: February and April closing lows and Fibonacci 38.2% retracement level at $888; Fib 50% level at about $843; rising 200-day MA; Fib 61.8% level at a little below $800.

Bottom line: Gold appears to be resuming its decline.

SILVER (daily)

Upside: No clear indication.

Resistance: 50-day MA, currently at $18.29.

Downside: Silver, too, was unable to close above its 50-day MA. RSI repelled at 50. MACD-Histogram flattening out below zero.

Support: Purple line and Fibonacci 38.2% retracement level at around $17.50; April low and Fibonacci 50% retracement level at about $16.25.

Bottom line: Silver appears to be resuming its decline.

GDX (daily)

Upside: No clear indication.

Resistance: Falling 50-day MA, currently at $50.31.

Downside: The gold-mining ETF was repelled by its 50-day MA on Monday and formed a bearish shooting star candlestick. RSI has turned down below 50. MACD-Histogram is flattening out at zero.

Support: April low at $45.53; 200-day MA, currently at $45.39.

Bottom line: GDX appears to be resuming its decline.

U.S. DOLLAR INDEX (daily)

Upside: MACD continues to rise. MACD-Histogram remains above zero.

Resistance: Bottom rail of channel; 50-day MA, currently at 73.73.

Downside: RSI and MACD-Histogram turning down.

Support: Recent all-time low at 70.7.

Bottom line: Plenty of room for MACD to rise before the dollar is no longer oversold.