Surge in Silver Price Outpaces Gold
Precious metals are having a great day today, as Gold gains more than $20, while the Silver price is within reach of $25.
Precious metals are having a great day today, as Gold gains more than $20, while the Silver price is within reach of $25. The retreat yesterday was short lived and the buying pressure today is much stronger, indicating that the market is still leaning strongly on safe havens and particularly Gold (XAG) and Silver (XAU), with buyers piling in on every retrace lower, which they see as an opportunity to get on the bullish trend.
Gold H4 Chart – The 20 SMA Is Stopping the Climb
Gold surged to a new high following the latest US Treasury auction, increasing around $25 and almost reaching $2,180 for the day, where it met the 20 SMA (gray) on the H4 chart above. Although this is roughly $16 less than last week’s all-time high, it still represents significant strength in the Gold market.
XAU/USD is now consolidating below $2,200 after an eight-day rally to new highs, with a 0.9% increase. Heavy selling yesterday following the US inflation report release was met with even stronger buying pressure today, driven by speculation that China’s central bank is purchasing significant amounts of Gold, along with other BRICS countries shifting away from US dollars.
Copper H4 Chart – Climbing Above $4.05
Copper and silver are also showing signs of strength, with copper rising 3.1% on Wednesday, breaking above $4 for the first time in seven months. Chinese smelters are facing difficulties in sourcing copper concentrates, despite rebounding stockpiles. On the daily copper chart, we see an upside-down head-and-shoulders pattern, indicating a potential target price of $4.28.
Silver H4 Chart – XAG Surging $1 Today
Finally, Silver saw a 3.3% increase today, reaching its highest point of the year. However, bullish investors may want to see the $26 level broken to confirm a larger upward movement in precious metals. But, before that we have the major zone at $25. Overall, the precious metals market is displaying notable strength, with Gold, Copper, and Silver all showing bullish momentum.
Gold Live Chart
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