The precious metals of Gold and Silver saw net July declines of
-$25.50 (1.4%) to
$1781.80, and -$0.15
$20.20 respectively. Gold is maintaining some degree of 'fear bid' via
geo-political tensions, whilst Silver is fairing better due to the s/t bullish equity market.
Gold: printing $1678.40, but recovering to settle in the $1761s. Price momentum is increasingly negative. I would note the monthly 10MA at $1838, which was again settled below, as the m/t trend is bearish. Gold is holding some degree of 'fear bid' on Russia/Ukraine, and China/Taiwan geo-political concerns.
There remains background 'bullish chatter', but I will
struggle to take gold seriously again until it breaks a new historic
high >$2100. An eventual push >2100 would offer a grander target
2400/2500 zone, but that won't be easy with a broadly strong dollar.
Silver: printing $18.01, but recovering to settle at $20.20. Momentum is increasingly negative. I would note the monthly 10MA at $22.73, which silver settled below for a fourth month. Price action has been a broad chop fest since August 2020. Things only turn interesting with a break AND hold above $25.50, but that looks difficult for the rest of this year, with the m/t bearish equity market, and the broadly strong dollar.
Dollar strength since early 2021 isn't helping gold, or silver.
The gold-silver ratio stands at 88.22, and whilst its historically high, its far below the March 2020 spike, when silver was printing the $11s.
Gold can be expected to perform better based on geo-political tensions, whilst silver will be more impacted by the m/t bearish equity market. I would expect the ratio to climb back >100 before year end.
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