Market the last days
Metals markets continue to attract interest from traders and new and existing retail investors around the world. Gold and silver, in particular, have experienced continued swings, demonstrating that market participants are active and moving in and out of the market as they see buying/selling opportunities. For gold, there has been a range of $81, with a low of $2,430 and a high of $2,531. For silver, the range has been $2.50, with a high of $30.20 and a low of $27.70.
Projections
Looking at the gold and silver chatter, it seems that all the major banks are calling for new highs for gold and silver. Global economic uncertainty, the war in the Middle East and the possibility of further conflict are fueling expectations that gold will reach $2700 or higher before the end of the year; the icing on the cake is that the Federal Reserve is expected to cut rates this month. Looking at the current situation, if gold reaches $2700, its little brother, silver, will not be far behind. Based on the current gold to silver ratio, which stands at around 88:1, silver could reach $33, or higher if the ratio moves as well. From a technical point of view, gold is well supported at $2470 and resistance is at $2500. Should resistance be overcome, we could see a push towards $2520, and to the downside, a break of $2470 could take us to $2455. Silver appears to be range bound, with support at $28.00 and resistance at $28.22-28.25. A break below support could take us to $27.70 and a break above resistance could take us to $28.50.
Josh Perez
Chief Executive Officer
Aurica Canada