Gold drifted lower overnight, after it failed to break back over $3,380 in a convincing fashion. But it managed to find buyers soon after the European open, adding to yesterday’s modest gains. The buying was enough to lift gold by a few dollars.
But prices suddenly took off mid-morning, helping to push gold out of its $3,340 to $3,380 range that had been building since early Tuesday. Interestingly, it was an unexpected surge in silver which provided the trigger for gold’s rise.
Silver jumped over 3% with most of those gains coming within a 30 minute window. The move follows silver’s 5% surge on Monday. That saw it finally break above $34, while today’s move has seen it smash above $35, and then up to $36, taking it well over October’s multi-year highs to levels last seen over thirteen years ago. This week’s moves are typical of silver.
Source: TN Trader
Like Mount Etna, it can go from dormant to live with no warning. The question now is whether silver can build on these gains and go on to take out its record high of $50 from April 2011, or if it has already exhausted itself.
As far as gold is concerned, it has risen steadily since mid-May when it dropped to $3,120, pulling back from its record high of $3,500 hit just three weeks previously.
The daily MACD indicates some positive momentum as it continues to push up from neutral levels. But there’s been quite a turnaround in risk appetite since April when stock markets were roiled by President Trump’s tariff announcement.
Investors seem more confident now which would suggest less reason to load up on precious metals. Despite this, prices remain elevated, suggesting that at least some investors are hedging their bets.
