The precious metals of Gold and Silver saw net July changes of +$133.40 (5.7%) to $2473.00, and -$0.62 (2.1%) to $28.94 respectively.
Gold, monthly
Silver, monthly
Summary
Gold: A new historic high of $2496.60, if settling in the $2473s. A ninth consecutive monthly close above psy' $2K. Price momentum ticked upward, and is on the high side. I would note the monthly 10MA at $2194, which was settled above, as the m/t trend is bullish.
Having already reached the 2400/2500 zone, 3K appears realistic before year end.
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Silver: a July high of $32.01, if cooling back to $28.94. Momentum is flat-lining on the moderately high side.
I would note the monthly 10MA at $25.93, which was settled above.
The second consecutive monthly settlement under psy' $30.00 isn't a great sign.
If silver can clear >$32.75, then soft target will be the $35s, last printed in Oct'2012. Any price action >36.00 would
open the door to the 49/psy'50 zone.
However, the problem will be if the equity market sees any cooling this summer/fall. Further downward pressures would be if the dollar strengthens, or if bond yields rebound.
Certainly though, gold printing the $2496s to end the month... is a pretty bullish sign.
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The gold-silver ratio stands at 85.46... which is certainly on the high side. I hold to the view that silver will greatly outperform gold, if on a 5-10 year basis.
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