Summary:
- Record rally on silver, upward move of over 7.5% this week
- Gold at the highest levels since the beginning of the year
- The silver market is chasing gold, chance to close the divergence
Strong upward momentum on the silver market
Past week brought a lot of volatility to the commodity market but it was the silver market that stood out. Precious metal has rallied significant since the beginning of the week.This week’s gains have already exceeded 7.5%. The upward movement is continued after the breaking new highs YTD as buyers do not give up. Looking at today’s session, the silver is already trading over 1.2% higher. Looking at the chart from a technical point of view, the key support zone is localized around the $16.15 handle. which served as a resistance until yesterday. As long as the price is above, the upward trend is valid and an upward move towards the peaks from June 2018 - around the level of 17.15$ - cannot be ruled out. Of course, the correction would be something completely "healthy" and it could occur at any time, but with such a strong trend as we are currently see on silver, one should not stubbornly look for the reversal.
Source: xStation5
Gold at the highest levels of 2019
Yesterday we could see solid gains on the gold market as the precious metal ended Thursday's session 1.28% higher. However, an upward move was extended over the night. Following a quick upward spike, the downward correction started. Today, gold is trading around 0.3% lower. The key support zone, marked by peaks from 25 June and 3rd July, is currently being tested. In case the green area is defended, the upward movement should continue. Gold has been in an upward trend for a long time and so far there are no signs of a looming reversal. Having said that, one should keep in mind the old market saying - Trend is your friend - rather than look for the end of the bull market.
Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appDivergence has a chance to close
We have been observing a divergence between silver and gold prices for a long time. Silver was lagging behind its yellowish peer. With this week's gains this divergence was narrowed. Looking at the charts of gold and silver overlaid on each other, we can see that the gap might be eyeing a close. There is still some room in between gold and silver prices, but it has been significantly reduced t by the solid gains on the silver market this week. While the gold price also moved higher this week, it added around 1.4% compared to 7.5% gain for silver.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
