Gold and Silver Pullback

Gold was down about 2.78%,  Silver was down about 5.2%. It did not take out any major lows or interrupt the upwards trend.

I did notice a time trend with Silver. The lines that you see are Fibonacci time zones and they have indicated a drop after the 18th day. I'm not sure if it is a coincidence, but something to watch for the swing traders.

Here is a Silver Seasonals chart from ZealLLC.com.  Both January and February have been positive months for Silver between 2000 and 2009.  Time will tell if we see the same positive pattern for 2011.

We may have a limited time under $30 an ounce for Silver.  Once the $30 level becomes support instead of resistance, those Silver Eagles selling at 28-29 now looks like a total bargain...