Major Update On The Gold & Silver Markets

Major Update On The Gold & Silver Markets from King World News

Here is a major update on the gold and silver markets.

Gold Bulls Stay Resilient
October 16 (King World News) – Ole Hansen, Head of Commodity Strategy at Saxo Bank:  “Gold has now spent more than two months trading sideways around $1500/oz. From a chart perspective the lower highs point to fading momentum. The same formation however could also signal the emergence of a bull-flag which, if broken above $1510/oz, could see it resume its rally. A deeper correction to $1450/oz or even $1415/oz would do little to remove the long-term bullish view many currently hold on gold. Only a break below $1380/oz, the old range top and 61.8% retracement of the June to September rally could change this view. (See chart below).

Gold Bull Market Remains On Firm Footing, Even If Correction Deepens

Gone for now is the roaring bond engine which back in June helped the yellow metal break above $13850/oz and with that out of its year-long range. But despite seeing bond yields stabilize following their rapid decent, U.S. stocks near record high and the outline of a trade deal emerging, gold has nevertheless managed to avoid a major correction…

An indication that it remains in demand, not only from short term speculative players – who otherwise would have tried to send the market lower to squeeze out longs – but also real money investors looking for diversification amid a slowing global growth outlook and various geo-political risks.

At the annual London Bullion Market Association conference just held in Shenzhen, China, the attendees were asked in survey to say where gold, silver, platinum and palladium would be trading by this time next year. The results were the following:

  • Gold: $1658/oz (+12%)
  • Silver: $23/oz (+33%) and equalling a XAUXAG ratio of 72 versus 86 currently
  • Platinum: $1182/oz (+34%)
  • Palladium: $1924/oz (+10%)

 

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King World News

Interviews with market experts from around the world with a focus on precious metals.