Gold, Silver, GDX chart review, May 21st 19:30pst
The monthly chart of Gold shows the peak at 1920 back in 2011, the decline and the potential bottom in late 2015.
The 100 month moving average is the purple line and it appears to be providing some resistance.
The weekly chart show a closer look at the ascending wedge pattern that it is in. It will typically break either up or down before reaching the end of the triangle.
There are red heikin ashi bars indicating the downtrend along with the bottomed out stochastics.
Will there be support at the lower trend line?
The daily chart shows how close price is getting to the lower trend line.
The 200 dma in orange does not seem to be providing any support or resistance levels.
Here is a daily line chart of Gold (Orange line) and the US Dollar Index (Green line) and their inverse relationship.
You can see that the dollar has been in rally mode over the last few weeks sending Gold down.
Here is a weekly chart of the US Dollar index, you can see that the 2009 highs provided support in 2018, 9 years latter...
Will the US Dollar continue to rally? If so, expect Gold to break down and below the lower trend line...
The weekly chart of Silver with the 200 dma in orange. It appears that the 200 is providing some major resistance. If Gold should break down, expect Silver to drop as well. But will Silver break the lower support level?
$12 an ounce Silver? $11?
The weekly Gold/Silver miners ETF, GDX is also in a tight trading range. The 200 dma is under the price unlike Silver...
The precious metals market is like watching paint dry....................I can see why the Cryptos got all of the attention over the last 1.5 years, b/c they actually move and maybe not as manipulated.
Would you rather invest $100 in Bitcoin or Precious Metals?
Great post @glennolua! It's interesting how gold and silver continues to be under pressure despite of various attempts to move higher. The stock market would come under pressure and then would go back up, sending the precious metals down again. Bitcoin may be in a correlated pattern with the stock market move? Been hearing lots of mixed messages with some who believes Bitcoin is the answer to invest as it will likely become the new era of digital monetary system, whereas others feel Precious Metals is the long-standing winner with its thousands of history as safety net against multiple failing financial systems. Personally I don't really understand much about Bitcoin although I had tried to understand it...what's your take on it? Upvoted you to support!
Hey kat, I missed your post... Anyway you should look into the basics of Bitcoin as it is the pioneer cryptocurrency which others are typically based upon. I think there is too much big banker influence on the precious metals market, they tend to move the price in the direction they choose. We will see...
@glennolua I do agree about big banker and central bank influences...not sure when that day comes that IMF will need to step in to intervene...but it may be a while until then. I guess my worry is how crypto is already somewhat manipulated in smaller degree at this time? GTBC stock at least lol. What I will say is that it will be great if there's a site with simple explanation of what crypto is and how it works...i attempted to learn but it was still a bit difficult for me to understand :P
You can go to youtube and look up a person named Amanda B Johnson. She was a journalist covering crypto a few years ago, then went on to work for the crypto Dash. There are quite a few videos that teach you blockchain 101 / explained / beginners.
@glennolua, thanks for your youtube suggestion! I'll check it out for sure! Always interested in learning about the financial/economical/crypto, it's great to be able to learn from both you and Amanda at this time. Keep it up! Looking forward to your other posts!
You can start here with Amanda's crypto/blockchain school lesson #1 and continue on with the series when you have the time.
Lots to learn!
Thanks @glennolua! I am watching it now, determined to get to learn more about it! Are you a crypto user yourself?
I started following the crypto market last year in June/July. I have a few of them and plan to hold them for a few years. I think it is definitely the future for accounting for all kinds of documents as well as a monetary system.
This gold and silver chart review is nicely shown and very well elaborated
It would be much better to invest in bitcoin.
Amazing post sharing bro...
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