Wednesday 31 August 2022

Month five down

The precious metals of Gold and Silver saw net August declines of -$55.60 (3.1%) to $1726.20, and -$2.32 (11.5%) to $17.88 respectively. Gold is seeing its inherent 'fear bid' erode, whilst Silver is fairing far worse due to the m/t bearish equity market.

Gold, monthly1b


 Silver, monthly1b



Gold: printing $1824.60, but swinging lower to settle in the $1726s. Price momentum is increasingly negative. I would note the monthly 10MA at $1833, 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 of the 2400/2500 zone, but that won't be easy with a broadly strong dollar.

Silver: printing $20.87, but swinging lower to settle at $17.88. Momentum is increasingly negative, at levels last seen in early 2014. I would note the monthly 10MA at $22.13, which silver settled below for a fifth month. 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.

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