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 Team prepare for final cycling event

FXTM is looking forward to another adrenaline-fuelled event with the Velokhaya Cycling Team as part of their successful partnership this year...

XM Forex Education Reaches Tanzania

During its newly started forex seminar tour across the African continent, XM reached three further countries, namely Tanzania, Ghana and...

Tickmill Reports Strong Performance

Tickmill Group once again surpasses previous financial records, posting growth in key financial metrics. The unaudited consolidated net profit for the first...


Foundation of Online Trading in Polokwane

FXTM was delighted to make a return to Polokwane, South Africa for another installment of the successful series The Foundation of Online Trading...

TC Pay Wallet is now available

We're pleased to inform our traders throughout Turkey and Georgia (with more Middle Eastern countries to follow) that they can now...

FP Markets launches new IB Portal

FP Markets, an ASIC-regulated global CFD and Forex broker founded in 2005, continues to strengthen its online offering by launching a new dedicated...


Tickmill MENA Client Celebration Dinner

As a company, Tickmill is always aiming to enhance the experience of our traders through tailoring our services and product portfolio. This time...

Trading Schedule for Daylight Saving Time end 2019

Please note that in observance of the upcoming end of Daylight Saving Time between October 27 - November 3, there will be...

HYCM Scores with one of the Highest Client Wins in Europe

The importance of choosing a reliable broker is paramount to trading. Most traders have given a serious thought to the security...

  


Share it on:   or