Tuesday 31 January 2023

Gold leading Silver

The precious metals of Gold and Silver saw net January changes of +$119.10 (6.5%) to $1945.30, and -$0.20 (0.8%) to $23.84 respectively. Monthly momentum is due to turn positive for both gold and silver at the Feb'1st open.

Gold, monthly1b

Silver, monthly1b


Gold: printing a new multi-month high of the $1950s, higher for a third consecutive month. Price momentum ticked higher for a third month, and is due to turn positive at the Feb'1st open. I would note the monthly 10MA at $1791, which was once again settled above. 

Upside resistance thresholds... the upper bollinger $1963s, giant psy' 2K, and then the Aug'2020 hist' high of $2089. Any price action >$2100 would offer a grander run to 2400/2500, as seems realistic as early as late summer.

Silver: printing $24.77, but cooling back to settle at $23.84.  Momentum ticked higher for a fifth consecutive month, and will turn positive at the Feb'1st open. I would note the monthly 10MA at $21.10, which silver settled above.

The problem for silver, will be if the main market sees renewed downside into the spring. A further downward pressure will be if the dollar resumes broadly upward. 

The gold to silver ratio ticked upward to 81.61. We remain historically on the high side, and I do expect an eventual return to the 34s. That doesn't mean gold AND silver can't both rise together.


The gold to bitcoin ratio climbed to 11.83. I have to wonder if we'll see ever parity again, and I fully accept that as 'crazy gold bug' talk.

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