information
ALERT: Due to technical issues, we can't accept Bank Bill Payments from TD Bank at this time.
News

Short-Term Reversal in Gold and Silver Before Trend Higher Continues - David Brady (02/01/2020)

Neatly stacked rows of gold and silver bullion side by side.

January 2, 2020

On December 27th, I tweeted the following…

We got a definitive negatively-divergent peak on the 4-hour chart in Gold on December 31 at 1529 and appear to be heading south now.

We saw the same negative divergence in Silver also, with the peak at 18.20.

Per my earlier tweet, I am now looking for a pullback in both metals to their respective signal lines on the Daily MACD…

As long as Gold holds 1446, I am looking for new highs above 1566 once this pullback is done.

The same goes for Silver and the prior low at 16.57. As long as that holds, I’m looking for Silver to move above 20 next.

Despite the downside in both metals near-term, I remain bullish medium-term. Gold has broken the series of lower highs and lower lows. It has also taken out its 100-day moving average at the third attempt and is now above all of its moving averages. All of those are trending higher again, and the 20-day EMA has broken back above the 50-day for the first time since October.

It is no surprise that we’re seeing the same thing in Silver:

Suffice to say that the trends in Gold and Silver have turned up again. This means that the short-term reversal in metals now underway will be short-lived and followed by a move up to new highs. There are some potential warning signals on the weekly charts once we get there, but let’s cross that bridge if and when we come to it.

Product Upselling Spotlight

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

Learn More
about-sprott-skyline
Headshot of David Brady

About the Author

David Brady has worked for major banks and corporate multinationals in Europe and the U.S. He has close to thirty years of experience managing multi-billion dollar portfolios including foreign currency, cash, bonds, equities, and commodities. David is also a CFA charter holder since 2004.

Using his extensive experience, he developed his own process utilizing multiple tools such as fundamental analysis, inter-market analysis, positioning, Elliott Wave Theory, sentiment, classical technical analysis, and trends. This approach has improved his forecasting capability, especially when they all point in the same direction.

His track record in forecasting Gold and Silver prices since has made him one of the top analysts in the precious metals sector, widely followed on Twitter and a regular contributor to the Sprott Money Blog.

*The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

Comments

Don Joe
January 3, 2020 at 10:26 AM
Gold: Divergencies in RSI and MACD already resolved in very short time, right? https://ibb.co/Q7BbY0h Happy New Year btw :-)