GOLD AND ITS MINERS TRY TO HOLD 200-DAY LINES -- SILVER AND ITS MINERS ARE SLIGHTLY STRONGER BUT ALSO TESTING UNDERYING SUPPORT LEVELS -- RISING BOND YIELDS MAY BE HOLDING GOLD BACK

GOLD SPDR TRIES TO HOLD 200-DAY LINE...Gold has been in a downside correction since the start of August.  And it's now undergoing an important test.   Chart 1 shows the Gold Shares SPDR (GLD) trading back above their 200-day moving average after slipping below it near the end of November.   That's an important test for the yellow metal.   Gold miners are in a similar situation.  Chart 2 shows the VanEck Vectors Gold Miners ETF (GDX) trying to regain their 200-day line as well.   Both have a lot more work to do on the upside to restore their uptrends.    Decisive closes above their 50-day lines would be a good start.   But they'll have to hold their 200-day averages for that to happen.  Silver and its miners are in a slightly stronger situation.   But are also testing important support levels.

SILVER IS SLIGHTLY STRONGER... Silver and its miners are also trying to hold important support levels. Chart 3 shows the Silver Trust iShares (SLV) staying further above its 200-day line and finding support along its late September low;  it's also rising slightly above its 50-day average.  The SLV, however, still needs to clear its early November peak (and falling trendline) to turn its trend higher.   Chart 4 shows the Global X Silver Miners ETF (SIL) also staying above its 200-day average; but meeting some resistance at its 50-day line.   It's normally a good sign to see silver holding up better than gold.  That's because silver usually rises faster than gold during precious metal uptrends.   Both metals, however, have to clear their November highs to restore those uptrends.

RISING BOND YIELDS MAY BE WEIGHING ON GOLD... Rising bond yields may one of the factors holding gold back.   Chart 5 compares the price of gold (brown bars) to the 10-Year Treasury yield (green bars).   And it shows gold peaking at the start of August when bond yields started to rise.  Since gold is a non-yielding asset, it usually does better when bond yields are lower or dropping.  Rising bond yields can have a depressing effect on gold.  The recent rise in stocks may also be holding good back.   Both of those headwinds may be over-riding the weaker dollar which usually helps gold.