Silver down over 3% on the day as buyers show further signs of exhaustion for now

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

Silver 30-07

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.


Precious Metal ETFs Shines in July

Amid rising U.S.-China tensions and worsening COVID-19 crisis, precious metals have become attractive and more appealing to investors. Gold has skyrocketed to an all-time high nearing $2,000 per ounce while silver has jumped to the highest level of nearly $25 in seven years.

The weakness in the U.S. dollar against major global currencies also raised the metal’s attractiveness, as it does not pay interest like fixed-income assets. The Bloomberg Dollar Spot Index is poised for its worst July in decades, having lost 3.9% so far this month. The index is trading at the lowest since 2018. Additionally, massive liquidity injections by central banks across the globe and hopes of further stimulus supported the price of metals.


Silver to surge above $35 after taking a breather – Credit Suisse

Silver has established its looked for base and has already moved to the first resistance at $26.09/22. Whilst strategists at Credit Suisse look for a pause here, they see scope for further gains ahead, ideally to $35.23/365. 

Key quotes

“Silver has seen an even more dramatic move higher than Gold over the past few weeks, confirming the flagged multi-year base above $19.65, and strength has already extended to our flagged resistance at $26.09/22 – the 38.2% retracement of the entire 2011/2020 bear market and key lows from 2011 and 2012.”


Silver Nears 7 Year High, Closing in on US$30

Silver edged above US$26 per ounce on Monday (July 27), adding more that 31 percent to its value since January.

Safe haven demand and record exchange trade fund (ETFs) inflows have been the primary catalysts for the metal’s sustained growth in Q2. Reinvigorated animosity between the US and China, and concern a second wave of COVID-19 will further weaken the global economy have been key drivers recently.

The white metal is now back in territory unseen since September 2013, with motivators in place to move it higher.


Gold may eclipse dollar as reserve currency after outsize coronavirus spending: Goldman Sachs

The U.S. dollar’s longstanding status as the world’s reserve currency is at risk after the greenback’s weakening by unprecedented government efforts to shore up the economy during the COVID-19 pandemic, according to Goldman Sachs Group Inc.

Ballooning federal debt levels and a potential shift in favor of inflation at the Federal Reserve amid increased geopolitical hostilities, domestic unrest and an onslaught of new COVID-19 cases are among the headwinds the greenback faces, according to the firm’s strategists.

“Real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge,” wrote a team of Goldman strategists led by Jeffrey Currie.


Gold: Set to test $2300 over next 12 months – Citibank

Analysts at Citigroup have revised up their gold-price forecasts across the time horizons, given the latest relentless rise in the yellow metal to fresh record highs of $1981.34.

Key quotes

“Still further to go, short-term target $2,100, then $2,300 in 6 to 12 months.”

“Prices seem biased to stay higher for longer, with 2019-2020 emerging into a unique bull regime for the yellow metal.” 


Gold pullback extends to start the session, silver also down by 9% on the day now

The pullback is getting violent

Gold has fallen to a low of $1,907 on the day as the sharp fall continues following futures touching over $2,000 earlier in the day. Meanwhile, silver is tailing off to a low of $22.32 or down by 9% after having touched just above $26 in Asian trading earlier.

As mentioned yesterday, the $2,000 mark may be a bit of a stretch for gold given how rapid the rise has been since firmly breaching the $1,800 level at the start of last week.
Historically, the parabolic moves in the commodities space tends to lead to violent pullbacks and today is but an example of that. For some context, the high for gold today was $1,981 and we are trading nearly $70 below that now.


Platinum Continues To Lag Other Precious Metals; That Could Be About To Change

This article was written exclusively for

  • 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.


Gold’s ‘Stunning’ Surge Evaporates Shorts With Fed Full-Throttle

(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.”


Hard assets hit new highs

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.