Gold And Silver Testing Support Levels For The Last Time
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Gold continues to hold above $1,450 despite stumbling on strong economic data released last week. Last Friday, the November non-farm payroll numbers surged, up 266,000. The expected increase was 180,000. This is the biggest jump since January. The end of the GM strike boosted employment in motor vehicles and parts by 41,300, part of an overall 54,000 gain in manufacturing. This news drove up the U.S. equity markets and caused investors to move money out of “safe-haven” assets. Gold had reached a high of $1,483 per ounce before testing the recent support level above $1,450.
It is questionable whether there will be a phase one trade deal between the U.S. and China before the December 15th deadline to increase tariffs. Any positive or negative statements about this trade deal continue to have a sizeable effect on the equity and precious metal markets. Now, there are unconfirmed statements out of China that the Chinese are going to wait till after the 2020 U.S. presidential elections to make any deal. I believe someone is going to blink. If the impeachment appears likely to happen, Trump needs to give a little to show some progress with the Chinese. If the impeachment is not likely, we may see some significant concessions from the Chinese.
Regardless of what happens with U.S. economic statistics or the Chinese trade wars, the Gold and Silver fundamentals have never looked better. I continue to believe we will have a year-end rally in the precious metal markets, and Gold at the current price is an unbelievable value.
Today: Some weak Chinese economic indicators add support for the Gold price this morning. Gold is base building with the price above and below the $1,460 per ounce level.
Like Gold, Silver traded lower after news of November non-farm payroll numbers surged. After reaching a high of $17.30 last Wednesday, Silver tested the $16.50 per ounce support level on Friday. Silver closed at $16.50 on Friday, down $0.39 for the week. The Silver-to-Gold ratio increased to 88.26-to-1 per ounce.
Today: Silver is following guidance from the Gold price, as it finds support at the $16.60 per ounce level. I’m seeing lots of bargain buyers coming into the Silver market.
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Both Gold And Silver Break Below Test Support Levels ByApril 30 2024