Gold & Silver Hold Up Well While Broader Markets Continue To Sell Off

The gold and silver prices have held up remarkably well compared to the broader markets as they continue to sell off today.  While the Dow Jones Index is down more than 250 points, gold and silver are just slightly lower.   However, gold has traded in the green several times today.

If we look at the 5-minute chart, we can plainly see that gold and silver have been trading in an opposite trend to the Dow Jones.  As the Dow declined, the precious metals Silver ETF (SLV) and Gold ETF (GLD) share prices went higher.

I am using the Gold and Silver ETFs as a comparison because Stockcharts.com does not show Gold or Silver futures in the intraday charts.  Here we can see that when the new Chinese tariffs were announced yesterday, both gold and silver shot up higher.  And even as the Dow Jones Index sold off today, both the SLV ETF and GLD ETF moved higher.

The silver price sold off during Asian trading as silver has been outperforming both gold and the broader markets over the past month.  The next chart shows that silver is up more than 8% over the past month, while the gold was up 4% and the Dow Jones down 2%:

Again, we can see that both gold and silver shot up higher when the Dow Jones sold off the past few days.  And according to the Northman Trader (Sven Heinrich), who appears regularly on CNBC, has provided his chart of the S&P 500, showing a large selloff could occur due to the technical pattern:

Sven has been writing articles suggesting that the markets are seriously over-valued, due to the Fed and Central bank propping.  If the S&P 500 Index does indeed finally correct lower as the technical setup above indicates, then we could see a continued precious metals disconnect as gold and silver move higher.

I did an update of the chart above to show that the GLD & SLV continue to trade at an inverse relationship to the Dow Jones today:

What is interesting is that the GLD and SLV were going up in price along with the Dow Jones before the Chinese tariffs were announced, then decoupled right at 1:30 pm EST on Thursday, Aug 1st.  Thus, the GLD and SLV (mimicking the gold & silver prices), are now trading in an inverse trend to the Dow Jones Index.

However, the important thing to note is that the GLD and SLV are both higher than what they were at 1:30 pm EST on Thursday versus the Dow Jones Index which is down more than 700 points.

So, it’s going to be interesting to see how the precious metals trade compared to the broader markets in August.

If you are new to the SRSrocco Report, please consider subscribing to my:  SRSrocco Report Youtube Channel.

HOW TO SUPPORT THE SRSROCCO REPORT SITE:

I would also like to thank those foundation supporters, who have chosen to become a member by making donations through PayPal to further the research and publishing work at the SRSrocco Report.

So please consider supporting my work on Patron by clicking the image below:

Or you can go to my new Membership page by clicking the image below:

Check back for new articles and updates at the SRSrocco Report.  You can also follow us on Twitter, Facebook, and Youtube below:

Enter your email address to receive updates each time we publish new content.

I hope that you find SRSroccoReport.com useful. Please, consider contributing to help the site remain public. All donations are processed 100% securely by PayPal. Thank you, Steve

25
Leave a Reply

avatar
7 Comment threads
18 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
14 Comment authors
PacoDTOuachita MikerftulakFatih Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Leon Ber
Guest
Leon Ber

commercial short position near all time record high at 157K, silver is going down for the next 4-6wks, I cannot believe you ignore this fact since the commercials have never been wrong yet

james r
Guest
james r

Good, that means more turbo fuel for silver to surge higher.
$17.00 next week.

james r
Guest
james r

Looks like $1600 should be here in a week or two. There is no resistance between $1500 and $1600. Should also see $18.00 – $20.00 in silver too!

Can you dig it !

DisappearinCulture
Guest
DisappearinCulture

Commercial shorts have never been wrong?
In gold, they tried to push the price down last week…more than once. They failed.

Paco
Guest
Paco

I Think that is a myth 2010-2011 Silver went up like 300% all the time against commercials shorting it like hell, they even increased their net short position from 25 million contracts to 50 million contracts during 6-12 months previous to the top. After 2011 they started cashing in their shorts but that could be from months to years away and hopefully never happen again if their games fail.

Joe
Guest
Joe

New entities are buying gold by the tonnage like Poland, Hungary, Paul Tudor Jones and Ray Dalio. Those are ones we know of. What about the ones we don’t know of. Big, big money worldwide is buying into Gold. Also, negative and low interest rates has pushed these entities into gold as a store of value. Also as global economic contraction continues. The time for gold & silver has come. Gold based at $1,270 a couple months ago and now at $1,452 but the upside is just getting started.

Bukharin
Guest
Bukharin

Sorry, I am just trying this Reply button.

Otto
Guest
Otto

Looks like Bitcon never got the memo…not crashing when stocks crash but rocketing up. The metals are doing well also. Owning both Bitcoin and the PMs paid off well for those who did their homework.

petedivine
Guest
petedivine

Gold and some of the mining shares are really on fire today.

DisappearingCulture
Guest
DisappearingCulture

It doesn’t take much “bad” news to start a selloff in one of the [if not the] most overvalued stock markets in history.

petedivine
Guest
petedivine

Unfortunately, there was a lot of the right kind of bad news.

Fatih
Guest
Fatih

Silver in China is allegedly at 769 Yuan or around 110 USD! Please check this link. You have to scroll down a little bit to see the “new” Yuan price. If anybody has other sources that confirm this please share!
https://www.goldbroker.com/charts/silver-price/cny
Edit: Scroll down to historical silver charts.

rftulak
Guest
rftulak

something is wrong on how you convert yuan to dollars …. here try this app https://cny.currencyrate.today/usd/115.56 AS per your reference don’t confuse percentage ( % ) with price. Common mistake.

Ouachita Mike
Guest
Ouachita Mike

Fatih, Thanks for the info. Because gold, silver, palladium, and platinum all had a similar surge on July 24, it would appear that this was due to a reset rather than market action. I too would appreciate any confirmation.

DT
Guest
DT

Classic metals related fake news. All you need to do now is to go to this Gold Broker and try to sell them your silver for $110 per ounce. And see how fast they change their fake chart back to normal.

Fatih
Guest
Fatih

This is the ALLEGEDLY silverprice in CHINA! If you have other sources to confirm this chinese silverprice please share! Do you have personal contacts in Mainland China? This would be best.

petedivine
Guest
petedivine

I just checked the site you referenced. 1 ounce of silver = 115 CNY which = $16.37

Fatih
Guest
Fatih

If you scroll down to historical silver charts the price is 769.35 Yuan. Please check again.

petedivine
Guest
petedivine

I checked again..You’re right on July 24th the price rockets higher. But I suspect its just a broken application. Arbitrage opportunities would settle such a large price differential between China and the rest of the world.
https://www.xe.com/currencycharts/?from=XAG&to=CNY

Fatih
Guest
Fatih

This “Glitch” doesn’t appear in the major currencies like USD, Euro, swiss franc or british pound. So MAYBE there is something to it?

DisappearingCulture
Guest
DisappearingCulture

A Global Race To Zero In Fiat Currencies…
…ushers in the restoration of price discovery in the precious metals market.
http://investmentresearchdynamics.com/a-global-race-to-zero-in-fiat-currencies/