The precious metals of Gold and Silver saw net January gains of +$564.10 (13.0%) to
$4886.71, and +$14.03 (19.9%) to
$84.63 respectively.
Gold, monthly1b
Silver, monthly1b
Summary
Gold: printing a new historic high of $5608.35. Price momentum ticked upward, and remains on the very high side. I would note the monthly 10MA at $3789, which was settled above, as the l/t trend remains bullish. The January candle is extremely spiky on the upper side, and bodes for s/t cooling.
L/t bullish, as 6K appears an easy target, with 7/8K viable before year end.
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Silver: printing a new hist' high of $121.64. Momentum continued to tick upward, and is on the very high side. I would note the monthly 10MA at $48.52, which was settled above, as the l/t trend remains bullish. The January candle is extremely spiky on the upper side, and bodes for s/t cooling.
L/t bullish, as $150 appears probable on the next up wave, with $200 viable before year end.
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Special note on Friday's collapse wave
First, Thursday's price action wasn't pretty, and whilst there was a very powerful bounce, it was still a warning of s/t bullish exhaustion.
Friday, January 30th was truly historic. In pre-market I saw gold -6% with silver -11%. With the opening bell, that soon became gold -7% with silver -15%. Red equities didn't help, with maximum horror of gold -12% with silver -34%. Truly incredible.
Regardless of how next week trades, I see this as just a s/t washout. Nothing has changed for the mid/long term, with even a number of the mainstream analysts starting to accept Gold $10K with Silver >$300, within the next few years.
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If only as a historical note (for myself), here are the daily charts...
Gold, daily
Gold printed a low of $4698, if seeing a (relatively) minor bounce to settle -$490.03 (9.1%) to $4886.
Daily momentum has begun to weaken, and due to turn negative next Mon'/Tues'.
I'd note the 50dma $4457, which has been support since last August.
Right now, the most bearish target would be 4200/4000.
The cautious looking to buy/add will be waiting for daily momo to stop weakening.
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Silver, daily
Silver printed a low of $77.73, if seeing a minor bounce to settle -$31.16 (26.9%) to $84.63.
Daily momentum settled fractionally positive.
I'd note the 50dma at $73.63, which was key support in Oct-Nov'.
Right now, the most bearish target would be the $54s/psy'50.
The cautious looking to buy/add will be waiting for daily momo to stop weakening.
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The gold-silver ratio settled January at 57.74, the lowest since early 2013.
I would note the 32s have been historically important.
On a long term basis (5+ years) silver could
be expected to outperform gold.
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With Bitcoin (as at January 30th) $84K, the gold-bitcoin ratio declined to 17.20, the lowest since late 2013.
As ever, ratio charts should be
especially treated with caution.
Price action is far more important than any ratio.
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