Gold & Silver Testing Key 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. |
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This Week's Headlines: |
Last Wednesday, the Federal Reserve confirmed the expected ½ point increase in the Fed funds rate. After the announcement and during the press conference, Chairman Powell was very hawkish about further interest rate increases in the near future. His statements had a very negative effect on all the financial and precious metal markets in late Wednesday trading and Thursday.
Gold dropped over $40 from Tuesday’s highs, reaching a low of $1,773 before seeing sizeable investor and central bank buying. By Friday, Gold had regained its recent bullish rally and closed at $1,791 per ounce, still down $19.70 for the week. This will be a record year for central bank buying of Gold to build their reserves in light of the devaluement of many of the world’s leading currencies. Surprisingly, the U.S. Dollar and 10-Year Treasury interest rates made no significant increase after the Fed announcements.
Today: Gold has traded this morning between $1,784 and 1,799 per ounce, as it builds support for the next move above $1,800. The U.S. Dollar and 10-Year Treasury rates moved higher in early trading putting pressure on the Gold price.
The Silver price also had a very volatile week, with a low of $22.57 and a high of $24 per ounce. Silver closed last Friday at $23.22, down $0.44 for the week.
The fundamentals for considering an investment in physical Silver have never looked better.
Over the years, I’ve provided information on Silver consumption from investment demand, solar, jewelry, photography, industrial and Silverware, but I just read an extraordinary article that provides updated information on all the reasons you need to invest in Silver. The article is called “The Case for Silver” and I have provided a link above. It’s a lengthy article and you would need at least 30 minutes to read and understand the various components. Let me know what you think.
Today: When Gold reached its lows this morning, Silver couldn’t hold above the key $23 support level.
Silver reached low of $22.82 before finding bargain buying and is moving toward the $23 area right now.
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