Friday, 30 August 2019

Precious metals powering upward

The precious metals of Gold and Silver saw powerful net August gains of $91.60 (6.4%) to $1529.40, and $1.94 (11.8%) to $18.34 respectively. The m/t trend is bullish, as Gold $1800s and Silver $21s are within range before year end.

Gold, monthly1b

Silver, monthly1b


Gold: a fourth consecutive net monthly gain, the highest monthly settlement since March 2013. Next major resistance is the 1790/1800 zone. New historic highs (>$1923.70) look out of range until early 2020... unless the Fed initiate QE4, which looks unlikely until at least spring 2020.

Silver: a third consecutive net monthly gain, the highest monthly settlement since Sept'2016. Soft target is key price threshold of the $21s, with the 2016 high of $21.23. Any price action >22s would offer fast upside to psy'30.

Its notable that Silver is playing catch-up to Gold, with the Gold:Silver ratio having fallen from the 92s to 83s.

Gold/Silver implications for related mining stocks: As we've seen since June, the related mining stocks are broadly soaring. Some are already above their respective 2016 highs, whilst GDX is still a little below.

If you believe Gold is going to break new historic highs... whether before year end, or a far more viable 2020/21, the implications for the related mining stocks should be clear.