Silver is set to outshine gold, even as prices of both precious metals soar in the midst of a faltering global economy and a weakening U.S. dollar.
This year, gold prices have shot to record highs not seen since September 2011. Investors have been fleeing to “safe haven” assets as the pandemic shows no signs of abating.
Gold prices hit a new record close of $2,021 per ounce overnight — settling above $2,000 for the first time. It was last trading at $2,020.30. Geopolitical unrest overnight likely added to the spike. The blasts in Beirut, which killed dozens and wounded thousands, “probably (added) to the shine of Gold above $2020,” said a note from Mizuho Bank.
Source: CNBC
Gold and Silver has made big moves overnight again, with Gold Futures trading at $2,032 per ounce and Silver at $25.99. Its move is in anticipation of the Fed's potential actions which the Fed is looking at maintaining 2% inflation. Lots of media attention is now back on Gold and Silver as compared to Tesla which is no longer the talk of the town currently.
Looking at the GLD monthly chart, we can see that it has now closed above its all time high in 2011 but the charts may look overbought within 2019/2020 but if we look at the consolidation, it looks to have started since 2013 (7 years) before one starts to make a decent gain from Gold.
GLD monthly
Looking at the SLV monthly chart, it looks like the move started in July to close the month of July with a massive gain of 63.99%! Looking at the broader trend, the highs for SLV was back in 2011 at $48.35 and we will see if Silver will catch up to what Gold is doing which would mean a possible gain of almost close to 50%.
SLV monthly
Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!
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