Gold, Silver, GDX chart review, April 14th 20:00 PST
Here is a monthly chart of Gold going back to 2000 which is the breakout year. 18 years ago!
I have a fibonacci set near the 2000 low to the 2011 peak just over $1900 USD's. The pull back went down to the 50% level and has rebounded since reaching the low point in December 2015.
Stochastics are overbought and is at a point where it is either going to embed or roll over under the 80 level.
The weekly chart shows the major resistance at the $1375 level which it has been under since 2014.
A potential ascending wedge is forming which will typically end with a break with up or down.
The daily chart shows more price detail and how close it is to the upper resistance level.
The summer months are usually a low point for the precious metals and we are not too far away.
The US Dollar has a lot of influence on the commodity sector and precious metals. It has been on a downtrend since the start of 2017 and if it breaks the 88.7 level, look for further downside and a bid in the precious metals sector.
The weekly chart of Silver shows the trading range that it is stuck in, between $13 and $21.
There is a bollinger band on the chart which shows how narrow the band is. In general, a break either up or down will typically happen as assets do not trade in a very tight range for extended periods of time.
The Gold/Silver miners ETF, GDX is also in a trading range and will follow Gold whichever way it breaks. I am biased to it breaking to the upside based on the US Dollar index cracking in the coming months or by the fall of this year.
Hi glennolua,
I wonder which direction gold, silver and dollar index will go thru this summer? How these movement will affect Bitcoin if any?
People were selling their physical gold and taking a loss and placing the proceed into BTC. That was last year when BTC was on a bullish tear to the upside. I still think/speculate that Gold will be higher in the coming years.
Gold will be higher in the coming years because perhaps, investors will lose faith in the Stock market where they will take out money and invest in Gold, a hard asset?
When the US dollar looses value due to debasement, investors typically will purchase commodities. I'm pretty sure BTC will also be higher year over year.
It's hard to say whether it will break up or down. Initially I believe it will break down as metals and miners fall with the stock market, but then start to rally after a few months. Silver especially be hit hard, but I think gold will fair well during deflation in assets.
good information thanks for@glennolua
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