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.

FXTM Trading Schedule

In observance of the upcoming public holidays in the US (Memorial Day) and the UK (Late May Bank Holiday) on the 28th of May, FXTM’s trading schedule will be changed...

Grand Capital office opens in South Africa

On May 18th, 2018, a new Grand Capital office opened in Klerksdorp, South Africa. The opening was attended by our Head of Analytics Sergey Kozlovsky...

Grand Capital office opens in South Africa

On May 18th, 2018, a new Grand Capital office opened in Klerksdorp, South Africa. The opening was attended by our Head of Analytics Sergey Kozlovsky...


Accounts in Bitcoins and Ethereum

Boost your crypto income with our new Standard account feature. Grand Capital clients can now trade classic instruments with their Standard account...

ATFX in the Spotlight of Media

Following the recent acquisition of its Abu Dhabi Global Market (ADGM) license in early April, and under the regulation of the FSRA in the Middle East...

List of the currency pairs is widened

Starting from 10th of May 2018 FortFS increased the number of currency pairs available for trading on all accounts types! Following pairs...


Hedged margin level changes

We would like to notify you that starting from 21/05/18 new changes for fully or partly hedged positions will be applied. These changes will come into force...

EcorePay: new payment method

We are glad to announce that from 8 May 2018 new payment method via bank cards - EcorePay becomes available for clients from Latin America...

FXTM Media Tour to South Africa

FXTM's Global Head of Currency Strategy and Market Research Jameel Ahmad travelled to South Africa last month for another triumphant media tour...


In the past 24 hours Bitcoin has lost -3.24% and reached $7548.07. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.9359% and is now at $1.1699. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -15.92% and is now at $587.469. Have the most popular cryptocurrencies compared online 24/7.


Top Forex Newsmakers



Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM88%
3HYCMHYCM86%
4FIBO GroupFIBO Group81%
5FxProFxPro78%
6FXCMFXCM71%
7HotForexHotForex70%
8XMXM69%
9Alfa-ForexAlfa-Forex68%
10Grand CapitalGrand Capital65%


Forex Articles
  


Share: