Since our last market update, gold has gone up and up. Gold has reached $2943, which is an all-time high, and has moved down to $2807, with a range of $136. The market has enjoyed a lot of volatility due to several factors: events in the Middle East, events in Russia/Ukraine, inflation indicators in the US and threats of a possible tariff war. We have been writing daily posts on our Linkedin page, so for more updates we suggest following both Aurica Group and Aurica Inc.
From a technical standpoint, gold has tested the $2875 level several times and the bulls seem to want to protect that level, as they have yet to break above it. Each time it tests the market, gold bounces, suggesting that moves to the upside are in the offing. The support levels we are watching in gold are $2875, $2900, $2907-2910 and finally $2920. A break to the upside of the $2920 level will indicate a possible test of a new high in gold. If we break above the $2975 support level in gold, we will test up to $2950, where the next support level is located.
As for silver, we continue to closely watch the ratio, which currently stands at around 89.89 to 1, meaning silver is undervalued. With gold currently trading at $2917, silver should be around $33.50, so traders and market participants are expecting a silver rally. As for support, we are watching the $32.00 mark, a break down would lead us to test $31.50. As for resistance, there is some congestion around the $32.50 mark, a break to the upside would lead us to prepare for silver above $33.
Josh Perez
Managing Director
Chief of Global Trading