GOLD MOVING UP STRONGLY, SETTING NEW ALL-TIME HIGHS
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 was truly exciting for Gold investors. It started with Gold trading in a narrow range between $2,030 and $2,045 from Monday to Thursday. It appeared that Gold was testing the key $2,050 resistance level a number of times. Many professional traders were selling Gold short around $2,050 with a stop at the $2,065 breakout level.
Then came Friday and the price and demand for Gold exploded. There wasn’t any news announcements, economic data released, or geopolitical events that directly affected Gold. Gold traded between $2,040 and $2,050 per ounce in Asian, Middle Eastern and European markets on average to light volume for most of Friday. Then when the U.S. market opened, the price exploded from $2,043 to $2,065 quickly and with heavy volume. At that point, trading volume jumped on professional short-covering. On that increased buying, the priced moved above $2,080 and stayed in that area until the close.
The Gold market closed Friday at $2,086 per ounce, up $51 (2.5%) for the week. The next key resistance level is $2,100 per ounce, which could be tested this week. However, it would be better for the near-term rally if Gold could trade in the $2,060s and $2,070s for a few weeks.
There are two things that I find interesting:
First, the current Gold price rally defies the general belief that Gold would not rally until the Federal Reserve appeared to be willing to lower interest rates and second, with Gold trading above $2,000 per ounce for most of 2024, the premiums on many of the popular Gold investment and bullion coins has not increased.
Today: Gold continued higher this morning on high trading volume, breaking above the key $2,100 per ounce resistance level. Today’s Gold rally is strong moving toward $2,120 per ounce with very light volatility, just a steady move higher with a good amount of trading volume.
On Friday, as Gold rallied 2.5% on strong volume, Silver decisively moved above the key $23 per ounce resistance level on the highest trading volume of the week. Silver showed great price support above the $22 level for most of February, and now in March is moving higher. On Friday, Silver closed at $23.20 per ounce, up $0.25 on excellent volume. Now, hopefully the $23 level will act as Silver’s next support level. The strong demand for Gold has driven the Silver-to-Gold ratio to over 90-to-1, still an extraordinary level.
Today: Silver moved higher with Gold this morning, reaching a high of $23.82 per ounce before seeing some light profit-taking. Considering recent trading activity, it would be healthy for Silver to stay in the $23 to $23.50 range for a few days.
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