At last! A huge reversal in gold and silver trading

14 October, 2014

The precious commodities market has finally started to recover. In October 6th, gold moved low as usual in the first few hours of the trading session, shifting very close to its December 2013 low. However, before the trading session ended, gold surprisingly settled $16 higher. Is this the start of gold’s upward trend? Let’s examine the chart below

(chart courtesy of sunshineprofits.com)

In October 5th, there was a huge decline so it’s possible that what’s happening is a corrective downsizing in the USD index. The odds of gold being on an upward scale will rise when it moves above its short-term support line.

The precious yellow moving closely to its December 2013 low is an important variable in analyzing its future movements. What happened is a reverse hammer candlestick, since it rallied right after settling close to last year’s low and then moving $16 higher after the intra-day session. The reverse hammer candlestick indicates that gold will be on a bullish trend and will most likely be followed be a bigger rally in the following weeks.

As for the precious white metal, it is also on an upscale trend, rising above its long-term support line. Silver is most likely going to rally based on this, combined with the precious metals market’s overbought status. Earlier in June, investment site BullionVault reports that hedge funds trading US futures and options saw an increase in bullish bets for the precious metals commodities.

Conclusion

Investors can go long in gold, silver, and mining stocks given that price movements since the beginning of the second week of October seems positive. Gold stocks getting close to their 2013 low is a major support level for their future price movements. With a positive outlook for the precious metals’ overbought status, the future of both gold and silver, as well as the metal mining industry, seems very bullish.

Alpari improves transaction execution

In 2019, Alpari made one of the most important achievements in operating activities in the CIS and international markets - we successfully implemented...

New instruments for ECN Prime accounts

Six new instruments in the categories Spot Metals and Spot Energy will become available on ECN Prime accounts on February 19th, 2020...

Number of Alpari app users passes 850000

The number of traders and investors around the world using Alpari brand mobile applications for their activities on the OTC currency market exceeded...


Alpari still leads the way in ECN trading

The Alpari international financial brand has once again proved itself one of the most technologically advanced brokers in the world...

FXOpen Forex White Label

FXOpen's extensive experience and in-depth knowledge of the Forex market and customers' needs will ensure a successful operation for your own Forex business...

PayRetailers: a new payment service

Grand Capital boasts many deposit/withdrawal options for clients in various countries, and now we're glad to announce that our services have become...


The Twelfth Man: ICEA Premier League

Whenever the opportunity presents itself, we like to become involved with causes that align with our core beliefs. Whether it's local charities...

HotForex partners with Santos FC

Award winning broker HotForex continues to establish itself as an industry leader with its latest initiative in cooperation with Santos e-Sports...

FXOpen Launches AirTM Payments

FXOpen is delighted to announce a brand new, cutting-edge payment method for our clients, via AirTM. To celebrate the launch, clients can deposit...

Top 10 Forex Brokers 2020

200+ Forex Brokers
Top 10 Profitable Forex Advisors
The Most Profitable Forex Advisors 2020

Automated trading systems are an opportunity to create passive earnings in the financial markets for all users. Successful and proven strategies are integrated into the algorithm of advisers, which will make it possible to earn on the pricing of assets without delving into the subtleties of technical analysis. We present the Top 10 Forex Advisors including Equilibrium, Excalibur, Night Owl...

Top 10 Forex Advisors 2020

All Forex Advisors
TOP 10 Best Forex Trading Platforms
Best Forex Platforms 2020

A variety of web terminals and specialized software makes a choice of a trading platform a difficult one for a novice trader. What should be this vital decision based on? To begin with, it is necessary to highlight the main criteria that high-quality software must meet for making money on financial markets...

Top 10 Forex Platforms 2020

All Forex Platforms