Gold consolidates
Gold broke above $2,500 in mid-August and has been trading either side of this level ever since. On one hand, this looks quite constructive from a bullish standpoint as the to-and-fro on the daily chart suggests a period of consolidation. This is entirely reasonable given the run-up from $2,300 at the end of June. It’s also encouraging that gold hasn’t yet experienced one of those sharp and deep sell-offs which have occurred monthly since April. On the flip side, it could be argued that gold has stalled at current levels and finds itself unable to build enough momentum to break out of its orbit around $2,500. It certainly needs a catalyst to get it moving again, and hopefully that will emerge over the next week or so. Could silver be weighing on gold prices? At current levels, silver is up around 20% so far this year which is pretty much in line with gold’s own gains of 21%. But silver has been much higher, as it was trading a touch north of $32 per ounce as recently as May this year. And while gold has made a succession of record highs this year, silver remains a long way below its own all-time high of $50 from April 2011. Time to play catch-up?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.