Precious metals show signs of life

31 ביולי

Finally, gold found some love yesterday. Prices rallied late afternoon in a move which pushed gold back above $2,400. It went on to build on those gains overnight. The question now is if it can make further upside progress, or is this latest rally going to peter out as resistance is tested around $2,430? Gold is now back within sight of its all-time high around $2,480 from a fortnight ago. The daily MACD looks as if it is flattening out a bit, after pointing downwards. The MACDs on the shorter, and far less reliable, timeframes suggest that upside momentum is building, and this morning’s dollar weakness is also helping. But gold bulls have had to cope with a stack of disappointments recently. And despite making a succession of fresh all-time highs this year, it feels as if upside progress has been incredibly sluggish. Silver is showing signs of life, having picked up yesterday to push back above $28 per ounce. This week could prove pivotal for short to mid-term performance in precious metals. And tonight’s FOMC announcement may well have a large part to play in driving sentiment.