Tuesday 31 August 2021

Mixed month for Gold & Silver

The precious metals of Gold and Silver saw net August changes of +$0.90 (0.05%) to $1818.10, and -$1.54 (6.0%) to $24.01 respectively. Gold is surprisingly fairing better than Silver

Gold, monthly1b 


Silver, monthly1b



Gold: Gold printed $1675.90, but recovered into end month, settling in the $1818s. Price momentum ticked lower, and is negative for a seventh month. The August candle is very spiky, and offers a short/mid term floor from the $1675s. I would note the monthly 10MA at $1805.06. For bullish confidence, gold bugs need to see a monthly settlement >$1850.

Silver: A third consecutive net monthly decline. Momentum ticked lower for a third month, and has turned fractionally negative. I would note the monthly 10MA at $25.65, which silver settled decisively below. Price action has been a m/t chop fest since August 2020. Things turn decisive for the mid/long term silver bulls, with a break AND hold above psy' $30.00.

The gold silver ratio stands at 75.74. Cyclically low - much like 2011, and the setup leans to gold outperforming silver into 2022.

The Gold to Bitcoin ratio stands at 25.86. On any basis, this remains truly bizarre, as it takes almost two pounds of gold to buy a single Bitcoin. Its at least partly a case of the millenials having near zero interest in physical assets.

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