Correction In The Gold & Silver Prices Test Support Levels
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Stuppler & Company is proud to provide our clients this Weekly Market Report (WMR). The report gives you my overview of the prior week’s precious metal and rare coin market activity and news. In each WMR I share the current status of Gold and Silver along with their support and resistance levels. |
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This Week's Headlines: |
Last Monday, Gold reached a high of $2,003 and it was downhill for the balance of the week. This was the second attempt this year to break above the key $2,000 resistance level, and hopefully the next attempt will achieve a serious breakthrough, and make $2,000 the support level.
During last week, Gold reached a high of $2,003 and a low of $1,928 by Friday. This was a truly extraordinary week with Gold closing at $1,932, down $40 for the week (a 2% decline). What caused this amazing volatility? A combination of a higher U.S. Dollar, interest rate spikes and concerns about the actions of the Federal Reserve at its upcoming May meeting have driven many financial markets lower. Last week, the concerns about higher inflation and the war in Ukraine took a back seat to financial news.
During last week, I spoke with a number of long-term precious metal and rare coin clients. While many investment quality certified rare coins showed sizeable gains during the last year, precious metal prices (Gold, Silver and Platinum) have been trapped in a tight price range. Even with 50 years of experience trading in precious metals, I find it difficult to explain why Gold and Silver haven’t reached new highs. As I look at the increasing worldwide inflation numbers, the increasing demand for physical Gold/Silver with shortages in supply, I believe the breakout is coming soon. The prices of precious metals are undervalued, based on a number of factors, and they are extraordinarly undervalued right now. I think your risk/reward for Gold looks outstanding. Gold should test support at the $1,900 level one last time, but when Gold runs through the $2,000 level, I look for $2,250 by year end. Silver has shown it has support above $23 and $30 is my target this year. (More in Silver section below).
Today: The Gold price got hit this morning in Asian markets and stayed on the defensive as trading started in the European and the U.S. markets. Gold reached a low of $1,891 before seeing some short-covering and fresh buying. The strength of the U.S. Dollar and heavy selling in the equity markets is creating a negative environment for precious metal prices. Gold needs to move back above the key $1,900 level within the next couple days or we will be in a new trading range.
Last week, Silver reached a high of $26.50 and a low of $24.08, an amazing price range in just one week. Silver closed last Friday at $24.23 per ounce, down $1.37 for the week (a decline of 5.35%). The negative factors that drove down the Gold price last week accelerated the Silver decline. When Silver reached its low of $24.08 per ounce, there was a sizeable increase in buying, from short-covering, bargain buying and long-term buyers. The Silver-to-Gold ratio has surged to 79.13-to-1.
Today: Silver felt the weight of a falling Gold market this morning. After breaking below the $24 per ounce support level, Silver sold down, reaching a low of $23.39.
This week I’m heading to Schaumburg, Illinois for the Central States Numismatic Society’s coin convention. This is the first major trade show I have attended in two years and I expect it to be very active. I estimate there will be over 200 major rare coin dealers at the show and over a thousand collectors and investors. I will provide a report on this coin show in next week’s Weekly Market Report.
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Both Gold And Silver Break Below Test Support Levels ByApril 30 2024