- Gold and Silver are holding up well despite the generally strong bearish reversals we have just seen in commodity markets.
- Gold is outperforming Silver, so traders should be more confident of being long of Gold than of Silver.
- Gold looks like an immediate buy, while Silver needs to get established above an area of resistance at $29 first.
- We may be entering one of the rare periods where Gold truly acts as a hedge against the start of a bear market. The bearish pullbacks we are seeing in some stock markets suggest the long bull run in stocks may be coming to an end, or at least a pause of significant length.
Gold (XAU/USD): Technical Analysis
The price chart above shows that Gold is well-established within a long-term bullish trend which has recently pushed it to new all-time highs on increasing volatility. This is a classically bullish scenario, and the record high was made only a few days ago.
We have seen some consolidative price action over the past few days, but a close look shows that it has a bullish bias.
The price now is close to the record high.
Over the past day, many commodities which were in bullish trends and breaking to new highs suffered heavy losses, as did stock markets. It is significant that Gold has not.
The analysis of Silver below shows that Gold is more bullish.
I see Gold as a buy, and a better buy than Silver.
Silver (XAG/USD): Technical Analysis
The price chart above shows that Silver is well-established within a long-term bullish trend which has recently pushed it to new all-time highs on increasing volatility. This is a classically bullish scenario, and its record high was made only a few days ago.
We have seen some consolidative price action over the past few days, but a close look shows that it has a weak bullish bias.
It is notable that Silver looks a little weaker than Gold, which it is underperforming. Gold is closer to the recent record high.
Over the past day, many commodities which were in bullish trends and breaking to new highs suffered heavy losses, as did stock markets. Silver’s losses were heavier than Gold, but the major precious metals together have held up quite well.
I still see Silver as a buy, but I would wait for a daily close above $29 per ounce before entering a new long trade here.
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