The precious metals of Gold and Silver saw net July changes of -$11.05 (0.3%) to $3292.22, and +$0.60 (1.7%) to $36.70 respectively.
Gold, monthly1b
Silver, monthly1b
Summary
Gold: a choppy month, settling marginally lower in the $3292s. Price momentum ticked lower for a second month, and remains on the very high side. I would note the monthly 10MA at $2996, which was settled above, as the m/t trend remains bullish.
The July candle was spiky, making for four consecutive candles that are reflective of tired gold bulls.
A washout into the Fall... to around psy' $3K appears more likely than not, especially if bond yields spike with a stronger dollar.
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Silver: printing $39.53 - the highest since Sept'2011, but cooling
back to settle at $36.70. Momentum ticked upward, and remains on
the moderately high side.
I would note the monthly 10MA at $32.70, which was settled above, as the
m/t trend remains bullish.
The July candle is pretty spike on the upper side, indicative of s/t bullish exhaustion.
A washout into the Fall... to the $34/33s looks pretty easy within Sept/Oct', not least if the main market sees a correction of around 10% to the SPX 5800s.
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Relative
to 2011 - when Gold $1923 and Silver $49s, gold is massively outperforming
silver. Even the bold will continue to favour gold, which would
better capture a future geo-political 'fear bid'.
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The gold-silver ratio fell to 89.71, but remains historically VERY
high. I'd accept that on a long term basis (5+ years) silver could
be expected to outperform gold.
As ever, ratio charts should be
especially treated with caution.
Price action is far more important than any ratio.
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With Bitcoin (as at July 31) around $116K, the Gold-Bitcoin ratio has increased, settling July around 35.34. It remains a
curious thought to realise that it takes a little more than thirty five 1oz gold coins to
purchase a bitcoin, the latter of which has an intrinsic
value of $0.00
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