Wednesday, 30 November 2022

A strong November

The precious metals of Gold and Silver saw net November gains of +$119.20 (7.3%) to $1759.90, and +$2.66 (13.9%) to $21.78 respectively. Silver settled above the monthly 10MA, whilst gold appears poised to follow.

Gold, monthly1b


Silver, monthly1b



Gold: printing the $1618s - the lowest since April 2020, if recovering to settle in the $1759s. Price momentum ticked upward, and offers a provisional cyclical floor/turn. I would note the monthly 10MA at psy' $1800, which was settled below, as the m/t trend is still bearish.

There is increasing background bullish chatter, but I will struggle to take gold seriously again until a decisive monthly settlement >psy' $2K. An eventual push >$2100 would offer grander target of the 2400/2500 zone. Clearly, a weaker dollar would help.

Silver: climbing for a third consecutive month. Momentum ticked upward for a third month. I would note the monthly 10MA at $21.26, which silver settled marginally above. The positive equity market and the weaker dollar certainly helped.

The gold to silver ratio stands at 80.80. The recent high is notably far lower than March/April, as silver is outperforming gold.

The gold to bitcoin ratio continues to narrow, standing at 9.71, the lowest since late 2020, as gold is outperforming Bitcoin.

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