Technical analyst Clive Maund’s latest on gold and silver
On gold . . . . . . .
“On the 10-year chart we see that gold is now a bullmarket, even against the dollar, and is currently challenging the heavy resistance arising from the 2011 – 2013 top area. The second attack on this resistance in the space of few months got further because of the Iran crisis, and if this cools any more short-term, it will probably lead to gold settling into a trading range before it mounts a more successful attack on this resistance. A point to note here is that while the resistance up to the 2011 highs in the $1800 area looks like a major obstacle, it’s not such a big deal as many think, given the rate at which the dollar is now being debased.” [1-12-2020]
On silver . . . . . . .
“Silver’s recent rally looks diminutive and stunted compared to gold’s, but that’s normal at this early stage of a new bullmarket, when silver typically underperforms gold due to investors being risk inverse, with silver being perceived as more risky and volatile than gold. Nevertheless, as we can see on its latest 6-month chart, silver did manage to break out of its reactive downtrend in force from early September. Last week, at the time Iran lobbed missiles at US bases in Iraq it had a go at breaking above its late September highs, but was not up to the task and fell back, putting in a reversal candle on big volume, which suggests that it probably has further to fall short-term – perhaps back to the upper boundary of the downtrend channel shown, but with the overall tenor of this chart positive it should then turn higher again.” [1-12-20]
Click on either chart to read the full report.