Gold & Silver continue to build a base for the next rally
| 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: |
Since the beginning of June, Gold has traded between $1,855 to $1,919, as Gold consolidates the recent gains. Physical and futures demand continues to grow every time Gold gets near the lows. It appears that the demand comes from both professional traders short-covering as well as fresh bargain buying. Professional traders make sizeable amounts of money short-selling at the highs and covering those shorts on any sell-off. When the market breaks out, they cover the short sales for a small loss, but it’s minimal compared to the profits made earlier.
Last Friday’s $16 decline in the Gold price caused Gold to close at $1,877, down $12 for the week. This is a sign that Gold will probably test the $1,850 support level one last time. I believe this should be the last time before Gold’s move towards $2,000. The fundamental reasons for Gold to break above $2,000 per ounce continue to be strong. Stimulus money, on a global basis, is increasing at a record level, and we are seeing signs of inflation increasing.
Please look at the testing of Gold’s support level as a great opportunity to increase your precious metal holdings.
Today: With the Chinese markets closed for holiday, and the U.S. Dollar Index moving higher, Gold got hit last night. Traders were able to briefly take the Gold price down below the $1,850 support level, reaching a low of $1,844. This has all the markings of the final clean out and could be the last great buying opportunity.
Silver closed last week at $27.90 per ounce, unchanged from the past week. Silver clearly did better than Gold last week, as many mints around the world are reporting shortages. It’s a good bet that Silver will firmly break above $28 per ounce before Gold firmly breaks above $1,900. The Silver-to-Gold ratio increased last week to 66.78-to-1.
Today: Silver reacted to Gold’s decline last night, reaching a low of $27.43 before finding bargain buyers, who took the price back up above $28 per ounce. Silver continues to show better price support than Gold.
If you are a member of the American Numismatic Association (ANA), you will be receiving your election ballot this week. Since I am a past ANA president, I know these candidates, and can provide guidance on the right people to vote for. The ANA needs leadership who will help the ANA to promote numismatics and provide protection from the flood of counterfeit coins and massive fraud from large tele-marketing companies targeting seniors. Please contact me at [email protected] and I will email you my recommendations.
