In my newest Gold & Silver market update, I discuss the short-term technicals on the precious metals and what they reveal as a possible trend over the next several weeks. Both gold and silver are setting up into some interesting triangle technical formations. While silver is forming a weekly symmetrical triangle, gold on the daily chart is behaving more like a descending triangle.
However, this is just the short-term technicals, not the mid-longer term fundamentals, which continue to get stronger every day. Unless we see the U.S. government provide a new stimulus package, we will likely continue to see a precious metals consolidation. Although the insanity taking place in the Presidential Election and aftermath, it’s difficult to determine short price moves as the news coming from the media is way too volatile on the markets.
For example, when Pfizer announced the positive vaccine news last week, the gold price lost nearly $100 in a day while silver fell more than $2.00. So, it’s impossible to provide trends when politics and media are causing havoc in the markets.
That being said, the technicals still provide clues about the direction of the precious metals and copper. I provided some updated charts on the copper price, which is a major indicator of the global economy’s health. I believe the copper price is setting up for a correction lower in the next few weeks.
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Steve, I do a bit of CFD (Contract For Difference) trading, illegal in the “US” I believe.
An observation; the Australian Dollar AUD/USD tracks Silver Futures Contract. They both sit upon a 100 period MA at the moment.
I have absolutely no idea if there is any significance in this observation, so thought I would just throw it out there.
RedOpal,
That’s quite interesting to see both the USD & AUD in silver terms both on the 100 Day Moving Average. I am working on an article about the DOLLAR DECLINE next year and how it may impact the precious metals.
steve
I haven’t looked too far back Steve; when you trade CFDs you are generally interested, only in the last 40 minutes let alone 40 days or 40 months BUT if you have a look at the AUD/USD chart and compare this chart with the Silver Futures Chart say from March 2020 and overlay a 50 MA and a 100 MA they are practically the same.
My curious observation just leads me to the question; “Why is that so”? 😊
You will then find the US Dollar (DX) chart moves in the opposite direction. I use all three charts to give me some idea in which the trends might move on the day.
For example, if I am trading the Australian/US dollar; if Silver is trending up and the US Dollar down, I trade the Australian Dollar UP and vice versa.
Make sense? Sounds easy BUT it is more difficult than you think.
Hey Steve. I don’t think any of us expect you to predict the $100 sell of days for gold. If you could do that reliably, I’m sure you would be sitting on the beach of your own private island somewhere, sipping margaritas. Regardless, I appreciate your candor, commentary, and observations of the market.