Silver Gains Twice as Much as Gold This Month | The Gold Forecast

Silver Gains Twice as Much as Gold This Month

August 30, 2019 - 6:55pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action
We are currenly flat with no active trades after pulling profits of $813.00 per contract yesterday on our long gold when the stop was hit.
In at $1524 Out at $1532.13 for a profit of $813.00
Gold Market Forecast

August will be a month that many precious metals traders will remember for some time to come. Silver outperformed gold by almost a 2 to 1 ratio. Palladium once again surged and is now more expensive than gold. Platinum broke out of the underlying pressure as it scored impressive gains on the month.

Next month could be more of the same however there are new variables which we will have to account for. First is the upcoming FOMC meeting scheduled to begin in mid-September. It is highly anticipated that the Federal Reserve will announce another rate cut, however nothing is etched in stone. For the first time in months we have seen substantial gains across the board in gold, silver, palladium and platinum. Will be interesting to see if that trend continues. As far as our trading goes we pulled profits yesterday and we want to have the dust settle before initiating our next trade hopefully next week.

Sentiment Indicator:
Gold -> Neutral
Silver -> Bullish
S&P 500 -> Neutral
Bitcoin -> Neutral
Bitcoin fundamentals by Joseph M. Wagner II:
Bitcoin’s recent drop in price over the last three days especially the 5% fall on Aug. 28 coinciding with $144 million long positions being terminated on the BitMEX exchange. Analysts such as David Balter of Flip-side Cyrpto believes this sell off could have been due to the CME’s BTC futures contract set to expire in one day on Aug. 30, “From our end, it looks like it was a sell-off to cash settle futures that are coming due on Friday for BTC,” Balter told Fortune.
Whatever the reason for the recent decline of approximately $800, (which in this particular market is not even a moderate price swing) bitcoin is still clearly still trading in its defined $1200 range. Ever since the break below the 50-day Moving average on Aug. 20 BTC has had strong support at $9500 with a ceiling at the $10,700 level.
With volume at low levels whales or buyers and sellers of huge amounts of BTC can have an even more noticeable effect of being able to move the price with huge short or long positions but even though pricing has held onto the key level of $9,500.
The many technical indicators that last week were starting to turn south have now officially done so. BTC is now below not only the 50 but 100-day M.A as well this has not happened since Feb. 18th of this year. Not only that but the RSI is sitting at 40 right at the line for being oversold and the last time it dipped below this number was in Dec. 2018 and correlated with a drop in price over $3000.
Regardless as we previously wrote a break below $9500 is needed before we would be bearish, likewise a break above $10700 would make us bullish so until one of these areas is taken out we remain neutral.