Gold & Silver Testing Recent Lower Support Levels
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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: |
Gold reached a high of $1,868 on November 19th and was looking good until we saw the sell-off last Friday.
Last Friday, the World Health Organization (WHO) designated a new COVID-19 variant detected in South Africa with a large number of mutations as being "of concern," the fifth variant to be given the designation. The entire financial market reacted to this announcement. On Friday’s opening, European stocks saw their biggest sell-off in 17 months and oil prices plunged by $10 per barrel as fears over a new coronavirus variant sent investors running for safe-haven assets. The negative sentiment moved to the U.S. markets when they opened. Equities, oil, U.S. Treasury yields, U.S. Dollar and precious metals all sold off on the open and continued to fall to the close. The financial markets are very concerned about this new Covid-19 variant (named Omicron), because it has the potential of negatively affecting the world’s economies from a Covid-19 recovery.
Gold closed the week at $1,785.40 per ounce, down $66 for the week. Gold needs to strongly move back above the key $1,800 level this week to keep the bullish sentiment from many of the professional commodity traders I’ve spoken with over this holiday weekend.
Today: Over the weekend and today, many nations have imposed new travel restrictions and lockdowns to prevent the spread of the new Covid-19 variant. Financial markets are reacting negatively to these new restrictions. The Gold price held in the $1,783 to $1,793 area during most of today’s trading.
Silver was affected more than Gold on the announcement of the Omicron Covid-19 variant. Silver reached a high of $24.95 last Monday and closed on Friday at $23.11 per ounce, down an extraordinary $1.67 per ounce for the week. I believe last Friday’s Silver price close was an over-reaction to the Covid-19 news and the sell-off in most of the financial markets. Silver under $23.00 is an extraordinary bargain, especially with a Silver-to-Gold ratio at 77.26-to-1.
Today: Silver continues to sell-off on the news of increased travel restrictions and lockdowns from many nations. Silver couldn’t hold the $23 per ounce support level, and reached a low of $22.74 per ounce before finding bargain buying.
The U.S. market for certified (PCGS/NGC) rare coins has never been better. Demand is strong and prices have been increasing (look at the recent CoinStats). Most of demand has been focused on the six very popular U.S. series provided in CoinStats. $25,000+ coins that are finest known or tied for finest known are becoming harder and harder to find. So, demand has been moving in the past few months to high grade MS65 or higher coins, in the $10,000 area, that have a PQ approved or CAC sticker. Since the next major coin convention isn’t until the FUN show in Orlando, FL in January, I expect to continue finding it difficult to fill want list demand.
