The precious metals of Gold and Silver saw net July gains of +$79.80 (4.1%) to
$2009.20, and +$1.95
(8.5%) to
$24.97 respectively. Monthly momentum remains positive, but the two
concerns should be renewed dollar upside and higher bond yields.
Gold, monthly1b
Silver, monthly1b
Summary
Gold: cooling to $1908.50, but recovering to settle in the $2009s, the first ever close above giant psy' $2K.
Price momentum was positive for a fifth month. The July candle is bullish engulfing, and leans distinctly bullish into late summer. I'd note first major support of the key 10MA has climbed to the $1891s.
Next upside resistance is the Aug'2020 historic high of the $2089s. Any price action >2100, would offer the 2400/2500 zone.
Any renewed upside in the dollar won't help, nor would any further rate hikes. Indeed, considering the ongoing rate hike cycle, gold is performing better than it might seem.
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Silver: printing $22.72, if recovering to settle at $24.97. The July candle is bullish engulfing, and leans distinctly bullish into late summer.
Momentum was net positive for a fifth month. I would note the monthly
10MA at $23.08, which silver settled above.
A key threat to silver, will be if the main
market sees renewed downside, but there is ZERO sign of that (as of July 31st). A further downward pressure will be
if the dollar resumes upward, and there is no sign of that either.
Of the two metals, I
favour Gold, especially for a potential geo-political 'fear bid', not least via Ukraine/Russia or China/Taiwan. I'd
accept silver has massively more upside potential than gold, but many
have been saying that since the $49s of 2011.
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The Gold to silver ratio stands at 80.46. Historically, this remains very high. The ratio could decline, but it sure doesn't mean that both gold AND silver can't both increase in value at the same time. Again, silver clearly has the better potential for upside.
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The gold to bitcoin ratio stands at 14.54. It remains a bizarre notion that it takes 14oz of gold to purchase one cryptographic string of the Bitcoin variety.
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