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.

Trade On The Go With FBS Trader

Meet FBS Trader, a universal trading platform tool for active people. With this app on your smartphone, you can take your trades with...

Leverage changes for Crypto instruments

Please be informed that starting from February 25th, 2019, leverage for instruments in the group Crypto will be increased to 1:5. Margin will be set at 20%...

FXTM Invest - Exceptional Profits

FXTM are pleased to announce that our FXTM Invest Strategy Managers generated an impressive profit from Investors during 2018, for...


Improved swaps on Micro accounts

Swaps are now lower for Micro and Standard accounts. Now your trading will yield more profit, while your deposit won't be drained by fees...

Orbex wins Best Education Provider

The win was announced in the Winter 2018 issue of the quarterly business publication which targets corporate organizations and high-level professionals...

The Million Dollar Trader

Over the last few months one of our traders joined the millionaires club, earning and withdrawing a whopping 2 million USD from his trading activity...


This is how a trader made 2 mln with 30k

I'm sure you've heard the phrase 'Grab the bull by the horns'. Well the trader we're going to talk to you about grabbed the bull by the horns, jumped...

Trading Schedule for US Presidents Day

Please note that in observance of the upcoming national holiday in the US (US President's Day) on 18 February 2019, there will be temporary changes to...

USGFX TradersClub Program

Join the USGFX TradersClub Program and get full access to structured education, industry-leading market research & commentary, premium trading...

  


Share: