Tuesday 30 April 2024

Net bullish April

The precious metals of Gold and Silver saw net April gains of +$64.50 (2.9%) to $2302.90, and +$1.74 (7.0%) to $26.65 respectively.

Gold, monthly1b


Silver, monthly1b



Gold: printing a new historic high of $2448.80. A sixth consecutive monthly close above psy' $2K. Price momentum ticked upward, and is on the moderately high side. I would note the monthly 10MA at $2062, which was settled decisively above, as the m/t trend is bullish.

Having already reached the 2400/2500 zone, 3K appears due at some point this year.

Silver: printing a high of $29.91, if cooling back to settle at $26.65. Momentum ticked upward, settling marginally positive. I would note the monthly 10MA at $24.26, which was settled above. 

The monthly close above $26.00 is rather significant. The problem will be if the main equity market sees any further cooling. Further downward pressures would be if the dollar strengthens, or if bond yields continue to climb. The price action of April 30th was a good example of that!

More broadly, silver bulls should remain seeking a decisive monthly close >$30.00, as looks realistic in May. Any talk of new historic highs >$50.00 has to be seen as 'crazy talk', until a settlement >$30.00. 


The gold to silver ratio stands at 86.40, which remains historically high. A valid natural target would be the 32s, as silver could be expected to outperform gold on a multi-year basis.  

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