Gold And Silver Prices Briefly Breaking Support Levels
| 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. |
|
|
|
|
This Week's Headlines: |
Last week, Gold traded from a low of $1,850 to a high of $1,898, closing at $1,872, down $13 per ounce for the week. Since August 22, Gold has tested the $1,850 per ounce support level seven times and held. A three-month-long base building and consolidation period are giving me a strong feeling that the coming rally is going to be strong. My estimates range from $2,300 to $2,500 for the Gold price by early 2021. Passage of the next coronavirus stimulus bill, which could be between $2-3 trillion dollars, will start that Gold rally. What I’m looking for, before this rally to new highs, is a final cleanout. That is when the Gold price briefly breaks below the $1,850 per ounce support level by 1-2% which causes margin calls, then quickly rallies up, never looking back.
As the number of coronavirus cases continues to increase in states and cities, lockdowns and curfews are shattering the U.S. economy. The road back is going to require massive stimulus from both Congress and the Federal Reserve, and they know it. That stimulus will go to businesses that have been negatively impacted by the pandemic, such as airlines, hotel chains, restaurants, and cruise lines, for example. With Pfizer, Moderna, and AstraZeneca vaccines soon on the way, the world’s equity markets are expecting to see those stimulus funds help negatively impacted companies very soon. They are bidding up those stocks, while precious metals and “Stay at Home” stocks have seen selling.
Today: This week will be a short trading week, with the financial markets being closed on Thursday (Thanksgiving) and brief trading on Friday. Today, the U.S. Manufacturing Purchasing Managers Index for November was released, and it rose to a reading of 65.7, up from October’s reading of 53.4. The data was significantly better than expected as economists were expecting to see a reading of 52.5. That report caused the U.S. Dollar Index to rally, and with no indication of any stimulus bill, Gold sold-off, dropping below the key $1,850 level to $1,830.
Last week Silver tested the $24 per ounce support level twice but closed above that level all five trading days. Silver closed last Friday at $24.35, down $0.40 for the week. Many of the popular Silver investment items are seeing a new wave of heavy demand. See this article Silver Market Getting Primed For Another Massive Buying Wave. As you’ll see, demand for the popular U.S. 1oz .999 Silver Eagles increased this month. The Silver-to-Gold ratio increased last week to 76.85-to-1.
Today: Silver sold off with Gold this morning, reaching a low of $23.40 before seeing some bargain buying. Investors need to remember that Silver started 2020 at $17.90 per ounce and as it makes its way above the $30 target we are going to see rallies and selloffs.
|
Thank you Barry + David Stuppler MintStateGold.com by Stuppler and Company [email protected] 1-888-454-0444 |
|||
Barry Stuppler |
David Stuppler |
||
 |
|||
| All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of Stuppler & Company’s knowledge at this time. Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein. Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability. All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions. | |||
-
-
-
-
-
Both Gold And Silver Break Below Test Support Levels ByApril 30 2024