May 27, 2020 -(Gold Market Wire) - While Gold has sold of and retraced most of its intra-day losses, Silver has moved up and stands almost 1% higher at the close. As the chart shows, the challenge for silver is going to be tomorrow's market. The trend lines are demanding a resolution.

Silver is still being bought across the market, although volumes haven't been exceptional in any way. The news that the USA bought an enormous 111 tons of Gold from Switzerland in a single month (April), when it usually takes only a single ton, may be causing the precious metals markets to stabilize and possibly could prepare the stage for a reversal of the recent sell off. Is the Treasury Department sensing the advent of a true monetary crisis in the making?

With the Chinese diplomatic aggression towards Hong Kong, the international situation is deteriorating at an alarming pace. The weakening of the Reminbi could yet lead to a true fall in the Chinese currency, which would be about as close to an act of complete economic war, in Washington's view, as you could get. The Trump administration has drawn a true line across the idea of Reminbi devaluation as about as close as you could get to a causus belli without a shooting war starting. As Hong Kong prepares for political capitulation to Beijing thoughts of an encirclement of Taiwan are starting to become foremost in minds.

One thing is for sure - the last two sessions of this week are going to be important for future direction.