XAU/USD & XAG/USD - Gold & Silver Traders Thread

Next up 1500. I mean next down.

Bit like Big Macs, eh? And they are also pretty safe. Read into that what you may.

For those using metatrader, there is an option to trade gold in a variety of currencies. Take a peek at the daily XAUAUD chart.

{edit - might depend on your provider, of course}

Thank you very much for this extensive reply. Best one I ever received.

I'd attribute today's selloff in gold and silver as the investor class having swapped out metals to take advantage of the expected immediate short-term stock gains due to the rate cuts, increased REPO, and helicopter money being thrown around and/or promised in the near future by virtually every government in the world. The ~10% gain across every index by the North American market close today proved that to be the correct choice and I wouldn't count on this being the bottom for gold and silver for that same reason; though a short-term rebound after this amount of selloff seems very likely followed by a "turnaround Tuesday" selling opportunity into the next gold and silver lows.

The gold/silver ratio exceeded 100:1 today which I thought would have been the target JP Morgan Chase and some unknown gold-holding entity or entities were aiming for. It was only coincidental that the last ratio high/low in 2008/2011 coincided with peak gold and silver prices, but with a lack of indicators other than the past lows at $1,430 and $1,390, I think seeing this ratio finally reverse will be the trigger to lift silver, though that won't exactly do the price of gold any favours.

Gold/Silver ratio, monthly chart


Silver, weekly chart



Given the noticeable lack of any significant price rebound when it was hit, the 76.4% Fibonacci of gold's last low-high at $1,506 where gold bottomed today should give way to see $1,496, the 38.6% of the full range. I'm waiting to see bullish RSI divergence on a daily chart before I'm willing to call this the bottom for gold (and likewise for silver) but that's my next downside target.

Gold, weekly chart



As a side note, including this latest package announced yesterday and today, the U.S. will have pumped somewhere approaching $20 trillion USD (possibly more) since last September to artificially keep the stock markets from collapsing while doing nothing whatsoever to promote the actual economy, so I'm not banking on this market recovery lasting very long. All of the issues that started this crash last September (U.S./China trade, Brexit, increased costs due to global warming, the return to trickle-down economics reducing purchasing power in a consumer driven economy, overwhelming government debt) and now the dissolution of OPEC+ and whatever long-term effects of lost wages and productivity due to Covid-19 will still be waiting to be dealt with once this latest gift to Wall Street runs out.

#SILVER / Weekly

I'm still a believer

What would happen to gold prices if we return to a gold standard? Been thinking about it a lot lately.

Why no news coverage on silver? It's absolutely tanked and gold is steady by comparison. Lowest levels since around 2015 as far as I can see. Good luck guys

Significant low of 8.42 in October 2008, and prior to that other lows - how far back ya wanna go?

Its a JP Morgan conspiracy according to at least one erudite commentator. Might be something in it, who cares. In the meantime...

{edit, platinum is also taking a snooze on the couch and has a hand on the floor holding an empty glass of whiskey, which is in a league of its own. Kinda related to palladium, which some may follow}

The dollar will fall this year .. so wait to buy some things. who knows silver reaches $ 10. I keep waiting..

But don't forget that they always tried to kill commodities .. since commodities are opposite to indices sometimes.

they want to make us believe that indices are the "safest investments."

All commodities (copper, palladium, platinum, silver, gold...) are dropping as economy is shutting down/lockdown...recession is here. Gold and to lesser extent silver will be the exception as they are still considered haven investments.
I think gold has found a floor at 1456. With NY opening soon, we will see how this floor is solid or not.

sorry lady, but the market says otherwise.

#Gold moved exactly as expected. It went to 38.2 fib, returned and hit our second short target at blue line i.e. bottom of consolidation at 50%.

#goldtrading #preciousmetals #vikinsa

Before:

After: https://www.tradingview.com/x/BYq2NcK7/

Update: (low sound)

Phew! The market speaks with you also? I thought I was the only one cursed with those conversations.

Pretty crazy that silver is at 11-year lows. I have a tough time not seeing this as an excellent buying opportunity.

I wouldn't suggest maintaining this train of thought with your beloved should you gift them with some silver jewellery in the near future, though.

Touché!

With the new zero reserve requirements during a crash which is reasonably leading into a serious recession, U.S. banks are divesting themselves of their most illiquid assets which includes *(theoretical) physical gold and silver which they may or may not hope to repurchase at a more attractive price once the dust settles. I doubt even JP Morgan Chase or BlackRock (time for them to unload their massive real estate holdings -- there will be bargains to be had soon enough) are immune to the need to focus on liquidity.

Now that palladium has replaced platinum in catalytic converters its doubtful platinum will ever regain its previous high, and the coming recession is going to kill most of the fossil-fuel-based auto industry (there will be no GM bailout this time) which means the speculation bubble that led to the price of palladium skyrocketing past where the shortage of physical supply should have raised it has been permanently burst.

Cash is king right now so expect the selling to continue.


*(There hasn't been a real audit of U.S. federal gold reserves since 1974. Every audit since then has been random weight tests and core sampling only. A real audit is one of few good things Trump championed at one point but never followed through on.)