Category: Market News

Silver falls to $23.50 and back under its 100-hour moving average

The moves in silver and gold remain a major theme in the market this week and we are seeing further signs of a pullback with silver down by over 3% on the session now.
More notably, price action is starting to break its 100-hour MA (red line) after having twice moved below that but only to hold at that level in the end this week.
If anything, this points to further signs of exhaustion on the part of buyers – for now.
Gold is also down by nearly 1% to $1,951.75 currently as the dollar is keeping firmer.
In the case of silver, there is some support from the overnight low @ $23.34 next but the 28 July low @ $22.31 will be one to watch moving forward if sellers are to try and push for a sharper pullback after the parabolic rise over the past two weeks.

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This article was written exclusively for Investing.com

• Gold hits an all-time high
• Silver’s wild ride to the upside
• Palladium and rhodium in bull markets
• Platinum could be next

Lately, precious metals have been all the rage. Early Monday morning, spot gold hit an all-time high, rising above $1,933; at time of writing, gold futures are closing in on that level too. Last week, silver jumped to over $23 per ounce for the first time since 2013. It’s currently trading above $24.

Palladium, one of the Platinum Group Metals, was hovering above $2300 today, over five times higher than its low in early 2016. Rhodium, another PGM that traded to a low of $575 in 2016, was trading around $8700 per ounce.

Platinum, however, has been the laggard in the sector. It continues to languish below $1000 per ounce.

While gold is heading toward another record high in US dollar terms, and silver handily surpassed its critical resistance level of $21.095 last week, platinum is sitting at a price that is less than half its record level at $2308.80 per ounce from 2008. Platinum has suffered from a lack of investment demand, even though producers have reduced output because of the precious metal’s low price.

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(Bloomberg) — Traders are abandoning bearish bets on gold as the yellow metal surges to all-time highs.

Short interest as a percentage of shares outstanding on the $75 billion SPDR Gold Shares exchange-traded fund, ticker GLD, is near the lowest level since July 2009, according to data from IHS Markit Ltd. Meanwhile, bullish call option volume in the ETF posted its second-biggest jump ever last week before bullion climbed to a record $1,946 per ounce Monday.

What began as a haven bid amid the coronavirus pandemic has been kicked into overdrive by central bank stimulus as slumping real interest rates — which strip out the effects of inflation — drive investors into gold. The bullish momentum along with a tumbling dollar has fueled “stunning” speculation in precious metals, according to analysts at Sundial Capital Research Inc.

“The popular narrative is that government monetary support will lead to inflation and currency debasement, so buy precious metals as a hedge,” Sundial’s Troy Bombardia wrote in a note Monday. “Regardless of whether this theory is right or wrong, the fact remains that traders are full-bore bullish on metals.”

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The slump in the US dollar is beginning to accelerate. The gold price leapt to a new all-time high in early trading on Monday 27 July, with silver and bitcoin also seeing strong price rises.

Gold hit a new record price of $1940 per troy ounce in Asian trading, exceeding the previous all-time high of $1922, set on 6 September 2011. Silver rose to $24.10 a troy ounce, up over 6 percent from Friday’s close, while bitcoin broke through the $10,000 mark, up over 7 percent from levels set on Friday.

According to precious metals commentator Ross Norman, the jump in the price of hard assets shows general investor nervousness about the prospects for financial markets.

“What gold and silver are telling us is that the macro and geopolitical environments are deeply unattractive,” he told New Money Review.

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