Gold pushing toward $3K

The precious metals of Gold and Silver saw net September gains of +$131.80 (5.2%) to $2659.40, and +$2.32 (7.9%) to $31.46 respectively.

Gold, monthly1b

 

Silver, monthly1b

 

Summary

Gold: A new historic high of $2708.70, if cooling back to settle in the $2659s. The sixth net monthly gain of seven. Price momentum ticked upward, and is on the very high side. I would note the monthly 10MA at $2308, which was settled above, as the m/t trend is bullish. A hit of giant psy' 3K remains on track before year end.
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Silver: a September high of $33.02, but cooling back to $31.46. The fifth monthly gain of seven. Momentum ticked back upward, and remains on the moderately high side. I would note the monthly 10MA at $27.12, which was settled above, as the m/t trend is bullish.

The problem will be if the equity market sees any cooling into year end. Further downward pressures would be if the dollar strengthens, or if bond yields rebound.  

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The gold-bitcoin ratio stands at 23.91, as gold slightly outperformed bitcoin in September.
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The gold-silver ratio stands at 84.54... and remains historically high. I'd accept that on a very long term basis (5+ years) silver could be expected to outperform gold.

As ever, ratio charts should be especially treated with caution. Whilst September's ratio leaned a little in favour to silver, both commodities were powerfully higher for the month. Price action is far more important than any ratio.
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Gold remains strong

The precious metals of Gold and Silver saw net August gains of +$54.60 (2.2%) to $2527.60, and +$0.20 (0.7%) to $29.14 respectively.

Gold, monthly1b

Silver, monthly1b

Summary

Gold: A new historic high of $2570.40, if cooling back to settle in the $2527s. A tenth consecutive monthly close above psy' $2K. Price momentum ticked upward, and is on the very high side. I would note the monthly 10MA at $2247, which was settled above, as the m/t trend is bullish.

Having already reached the 2400/2500 resistance zone, 3K appears realistic before year end.
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Silver: an August low of $26.50, but recovering to $29.14. Momentum ticked a little lower, if still on the moderately high side. I would note the monthly 10MA at $26.55, which was settled above. 

The third consecutive monthly settlement under psy' $30.00 isn't a great sign for Sept-Oct'. 

The problem will be if the equity market sees any cooling this fall. Further downward pressures would be if the dollar strengthens, or if bond yields rebound.  

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The gold-silver ratio stands at 86.73, which is on the high side. I hold to the view that silver will greatly outperform gold, if on a 5-10 year basis.
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The gold-bitcoin ratio fell to 23.36.
As ever, ratios are to be treated with caution.

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Gold powering upward

The precious metals of Gold and Silver saw net July changes of +$133.40 (5.7%) to $2473.00, and -$0.62 (2.1%) to $28.94 respectively.

Gold, monthly

Silver, monthly

Summary

Gold: A new historic high of $2496.60, if settling in the $2473s. A ninth consecutive monthly close above psy' $2K. Price momentum ticked upward, and is on the high side. I would note the monthly 10MA at $2194, which was settled above, as the m/t trend is bullish.

Having already reached the 2400/2500 zone, 3K appears realistic before year end.
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Silver: a July high of $32.01, if cooling back to $28.94. Momentum is flat-lining on the moderately high side. I would note the monthly 10MA at $25.93, which was settled above. 

The second consecutive monthly settlement under psy' $30.00 isn't a great sign.

If silver can clear >$32.75, then soft target will be the $35s, last printed in Oct'2012. Any price action >36.00 would open the door to the 49/psy'50 zone.

However, the problem will be if the equity market sees any cooling this summer/fall. Further downward pressures would be if the dollar strengthens, or if bond yields rebound.  

Certainly though, gold printing the $2496s to end the month... is a pretty bullish sign.
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The gold-silver ratio stands at 85.46... which is certainly on the high side. I hold to the view that silver will greatly outperform gold, if on a 5-10 year basis.

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