Since President Trump won the Presidency, the dollar has risen strongly, but doubts are now entering investor’s minds.
In the first three days of this week, precious metal prices rose, before running into a minor correction yesterday (Thursday). The net result is gold is little changed on the week from last Friday’s close at $1223 in early European trade this morning, and silver up just a few cents at $17.58.
Since the December lows, gold is up almost $100. From 1st January it is up 6.5%, and silver 10.6%. Technical analysts have been badly whipsawed, so they will be changing their minds, particularly when they consider our next chart, which includes commonly-used moving averages.
After a small tick-back towards support on the 55-day moving average, the gold price has continued its rally towards the 200-day moving average, currently at about $1260. At that point, some technical selling is likely, perhaps leading to a more serious consolidation towards support on the 55-day MA. If that doesn’t hold, it will be a signal that gold is still in a bear market and heading on down. This is the Gospel according to technical analysts.
This post was published at GoldMoney on FEBRUARY 10, 2017.
Follow on Twitter
Recent Comments