Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Price Next Key Level

Commodities / Gold and Silver 2021 Apr 22, 2021 - 11:43 AM GMT

By: MoneyMetals

Commodities

Gold rallied last week toward the top of a down-trending channel that has been in force since prices peaked last summer.

A breakout attempt in early January failed. The gold market subsequently slumped to a potential double-bottom low in March around $1,675/oz.

The $1,800 level now looms as a critical technical juncture.

The recent bounce could either fail around there… or gather the strength to finally break out of the multi-month corrective phase.


A strong push above $1,800 (confirmed by a weekly close) would carry hugely bullish implications for the remainder of the spring. New all-time highs could soon be in sight.

Bearish traders, though, will be eyeing lower levels if resistance kicks in and triggers a sell-off.

Either scenario could play out in the near term. However, the bullish scenario does have a few things going for it.

For one, the gold market appears overdue for a period of seasonal strength after suffering an unusually bad first quarter.

Gold prices may also be due to play catch-up to palladium, copper, and other outperforming metals.

Gathering strength in the mining sector in recent weeks suggests investors there anticipate firmer gold prices.

What’s bullish for gold is typically super-bullish for silver. Silver bulls are watching for a move above $27.00/oz to establish a breakout above the March high.

Is a Silver Raid Coming?
Some internet chatter is pointing to April 20th as a day for a “silver raid” – massive physical buying of bullion that depletes available inventories and pressures large institutional short sellers to capitulate.

It is difficult to gauge what impact, if any, this campaign will have on bullion availability or actual spot prices. The paper market for silver typically doesn’t react, at least not immediately, to developments in the bullion market.

That said, some internet-sourced campaigns have proven quite impactful on markets this year.

For example, The WallStreetBets community directly fueled a spike in Gamestop and other targeted stocks. And the once obscure joke of a cryptocurrency called Dogecoin got “memed” back into relevance – to the tune of over $40 billion in market value.

What Dogecoin is actually going to be used for other than to be traded back into other crypto or fiat currencies, nobody seems to know (or care). But Elon Musk is fond of it, and there’s no particular reason why Dogecoin can’t become as valuable as Bitcoin.

That value, down the road, could be multiples of today’s market prices… or a tiny fraction of them.

There’s no particular reason to expect any cryptocurrency to retain a certain value given that another digital coin could always come along to steal its momentum. Or the entire space could fall from grace and become functionally obsolete like so many other captivating technology innovations from the past.

The upshot is that if digital tokens backed by nothing and shares of companies with dismal business outlooks can surge for no fundamental reasons other than internet chatter, the same sort of boost could accrue to assets that do have actual fundamentals behind them.

It wouldn’t take much, relative to the size of crypto and equity markets, to move silver a lot.

A super-spike in silver prices as a result of a “raid” or “squeeze” isn’t necessarily something investors should expect. But crazier things have happened in other assets that have gone viral on the internet – and silver has the benefit of being useful and scarce in the real world.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2021 Stefan Gleason - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in