Metals destroyed on Tuesday, Indices advance.

02/02/2021

It seems that Friday's dip in equities was a short one, and it was instantly bought on Monday, with the Nasdaq 100 index rising more than 3%.

Tuesday has continued in the bullish mood so far, with EU and US indices up nearly 1% during the London session.

The EURUSD pair has held the key support of 1.2060 so far, where the neckline of the large head and shoulders pattern is located. Should the euro fall below this zone, the formation's potential is circa 300 pips so that it could drag the EURUSD pair toward 1.1750.

Elsewhere, silver and gold are getting destroyed after yesterday's sharp silver rally. Silver was down 5% on Tuesday as paper selling continues, despite record demand and record spread between the paper silver and the physical silver. 

The paper silver now trades below 28 USD, while the physical is being sold for 33 USD and higher. It looks like the rally might be over as there is a huge reversal forming, with the inability to hold January's highs of 28 USD also looking bearish.

Later in the day, the EU GDP numbers are due, but the US calendar is empty. Therefore the current intraday trends could continue throughout the day. 
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