Gold finds technical support once again just below $1700
Saxo Bank’s Hansen sees the potential for a wave of short covering in the silver market

(USAGOLD – 9/2/2022) – Gold once again found technical support at just below $1700 in overnight trading. It is up $12 in early trading at $1711 after briefly dipping below $1690. Silver is up 33¢ at $18.19. Meanwhile, the dollar index hit a 20-year high in Asian trading before reversing course. Saxo Bank’s Ole Hansen sees potential for a reversal of silver’s downward spiral should “evidence emerge that inflation concerns are fading.”

The market, he says in an interview featured this morning at MarketWatch, “could quickly find itself wrong-footed,” encouraging a wave of short covering. For an indicator of where silver might be headed, he says investors should pay attention to the price of copper, not gold. “The rout in silver and copper, as well as zinc and aluminum, two metals that recently found support from smelters reducing capacity due to high energy costs, has by now reached the capitulation stage with silver having entered a previous consolidation range between $16.50 and 18.50.”

Silver and copper pricesoverlay line chart showing silver and copper prices five year

Chart courtesy of TradingView.com

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