Gold and Gold Stocks Approach Resistance
2022.11.29 06:05
[ad_1]
Precious Metals have enjoyed their best rally since the spring but are approaching significant resistance levels.
After trading as high as $1791, has fallen back to $1740.
The weekly and monthly charts show stiff resistance in the $1780 to $1820 zone.
The daily chart below shows a confluence of resistance (long-term moving averages) at $1805.
Gold and stocks, which have outperformed the metals recently, rallied up to close to a confluence of resistance.
has significant resistance at $29-$30, and has considerable resistance around $37.
Meanwhile, , which trades more volume than silver, has tested its 200-day moving average twice.
Silver bottomed before gold and the gold stocks and has led the rebound.
It has pulled back after reaching $22, a major resistance level. Look for support near $20 to hold if tested.
Silver should continue to consolidate, but if it can make a weekly or monthly close above $22, it could signal more upside for the sector and a new leg higher.
Silver vs Gold Daily Chart
Fundamentally, the next catalyst figures to be an official end to Fed rate hikes. This may or may not be preceded by the next round of selling in the broader market.
That selling could hit precious metals a bit but would set the stage for a big and sustained leg higher.
This remains one of the best and most ideal times to be a speculator in this sector. High-quality juniors are trading near their lows; the sector is hated yet has outstanding upside potential in 2023 and beyond.
[ad_2]
Source link
