Daily Gold News: Monday, Apr. 19 – Gold Extending Gains

The gold futures contract gained 0.76% on Friday, as it extended its short-term uptrend following breaking above the recent trading range. Early in the month the market has bounced from the support level marked by March 8 local low of $1,663.30. In early March yellow metal’s price was the lowest since last year’s June. Today gold is trading higher again, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is 0.6% higher this morning, as it is extending last week’s advance following weakening U.S. dollar . What about the other precious metals? Silver is 0.9% higher, platinum is 1.2% higher and palladium is 2.2% higher today. So precious metals are higher this morning.

Friday’s Building Permits/ Housing Starts release has been slightly better than expected. Today we won’t get any new important economic data releases. The markets will be waiting for Thursday’s ECB ’s Monetary Policy Statement announcement.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Monday, April 19

  • No important economic data releases

Tuesday, April 20

  • No important economic data releases

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.

* * * * *

Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

 

HotForex Launches Special Trading Activity For Ramadan 2021

From 13th April to 12th May, for every lot traded (1 standard lot) on forex, gold and silver from trading accounts participating in the activity, HotForex will be donating 1 USD for the well-being of children in Islamic countries. Participants in the Ramadan activity will have the chance to enter three exclusive lucky draws for a chance to win great prizes.

A HotForex spokesperson commented: “At HotForex, we largely focus on social responsibility and always look for ways to support and give back to our surrounding community. With respect to our clients’ traditions, we are very pleased to announce this new initiative and we welcome all traders to celebrate Ramadan by joining a good cause with the chance of winning special tech prizes.”

Visit the HotForex website today to find out more about the Ramadan charitable activity.

About HotForex

HotForex is an internationally acclaimed multi-asset broker of choice to over 2.5 million live accounts worldwide that has earned over 45 coveted industry awards in its ten year history. The company offers a wide variety of account types, innovative products, platforms, tools and educational resources besides outstanding customer service and unparalleled trading conditions to facilitate individuals and institutional customers to trade Forex and CFDs online.

Super Lottery: NordFX Gives Away 100,000 USD To Traders

The name speaks for itself: 100 cash prizes of $500, $1,000, $2,500 and a super prize of $ 20,000 will be drawn by the year end.

It is quite easy to take part in the lottery and get a chance to win one or even several of these prizes. It is enough to have a Pro account in NordFX (and for those who do not have it – register and open a new one), top it up with $200 and… just trade.

Having made a trading turnover of only 2 lots in Forex currency pairs or gold (or 4 lots in silver), the trader will automatically receive a virtual lottery ticket. The number of lottery tickets for one participant is not limited. The more deposits and the greater the turnover, the more lottery tickets the participant will have, and the greater their chances of becoming a winner of the prize money.

Unlike trader contests, there is no need for a lottery participant to show exceptional trading results. In this case, both experienced professionals and beginners have equal chances of winning. And they can either use the received prize money in further trading, or take it out without any restrictions.

70 prizes of $500 each, 20 prizes of $1,000 each, 10 prizes of $2,500 and 1 super prize of $20,000 will be drawn. The draws will be held on July 1, October 1, 2021 and January 3, 2022. For more details, visit the NordFX website at https://nordfx.com/promo/super-lottery.html.

 

Gold And Silver Continue To Gain Value As Multiple Events Support Safe-Haven Assets

Rising geopolitical tensions, recent drops in the yield of 10-year Treasury notes, dollar weakness, a highly accommodative Federal Reserve and concern about the rising national debt all collectively moved gold and silver to multiweek highs.

The last time gold traded to $1784 occurred on February 25. On that date, gold opened above $1800 and closed at $1775. The last time gold closed above today’s highs occurred on February 22. This week gold opened at $1745 and gained approximately $30 based on today’s close.

june gold april 16

As of 4:30 PM EST, gold futures basis the most active June 2021 Comex contract is currently trading up $9.80 (+0.55%) and is fixed at $1776.60. Silver basis, the most active May 2021 Comex contract, is currently trading up $0.061 (+0.23%) and fixed at $26.025. This follows yesterday’s strong gains in both precious metals. Seeing as on Thursday, gold futures gained $28.10, and silver futures gained $0.40.

silver April 16

Dollar weakness provided mild tailwinds as the dollar index is currently fixed at 91.54. The dollar traded at 92.21 on Monday and lost 67 points on the week. The result is that the dollar index was devalued by -0.067% this week.

The U.S. 10-year Treasury note traded lower this week and is now yielding approximately 1.56%. This week’s decline also provided solid tailwinds aiding the safe-haven asset class.

On Wednesday, April 14, Chairman Jerome Powell spoke virtually at the Economic Club of Washington DC. He addressed the concern that many economists have about the ever-growing national debt that has been created from fiscal stimulus as well as the monetary policy of the Federal Reserve.

In response to these concerns, Chairman Powell said that “The U.S. federal budget is on an unsustainable path, meaning simply that the debt is growing meaningfully faster than the economy. The current level of debt is very sustainable. And there’s no question of our ability to service and issue that debt for the foreseeable future.”

In addition to that there is rising tension between the United States and Russia. Yesterday President Joe Biden signed an executive order imposing new sanctions on Russia based on information suggesting that they had interfered with our election as well as an increased amount of Internet hacking and other “malign activities,” which include sending additional troops to Ukraine as well as the continuation of persecution of Russian dissidents in specifics to Alexei Navalny.

In response to these issues, the White House issued an “Executive Order on Blocking Property with Respect to Specified Harmful Foreign Activities of the Government of the Russian Federation.” The full Executive Order can be read by following this link.

There is also increased tension with China. Today President Joe Biden met with the Japanese Prime Minister, Yoshihide Suga. According to CNBC, “The two leaders will gather in Washington in what will be the U.S. president’s first in-person summit with a foreign leader since his January inauguration. The meeting comes as the U.S. seeks to challenge China on issues ranging from human rights to unfair trade practices.”

These events collectively have been the driving force moving both gold and silver to gain value this week. All things being equal, they could continue to drive gold back above $1800 per ounce and silver above $28 per ounce.

For more information on our service, simply use this link.

Wishing you, as always, good trading and good health,

Gary Wagner

 

Silver Weekly Price Forecast – Silver Markets Form Bullish Candle

Silver markets have initially pulled back a bit during the course of the week to test the $25 level only to turn around and show signs of strength yet again. With that being the case, if we can break above the highs of the weekly candlestick, it is very likely that silver will then go looking towards the $28 level. The $28 level of course is a large, round, psychologically significant figure but more importantly is an area where we have seen a lot of resistance in the past. Ultimately, if we can break above there, then it is likely that the market goes looking towards the $30 level which has been a bit of a “double top.”

SILVER Video 19.04.21

The hammer from a couple of weeks ago is of course a very bullish sign, so as long as we can stay above there it is likely that we will continue to see buyers jump in and try to push this market to the upside. If we were to break down below that level, then it is very likely that the market would go looking towards the $22 level. The $22 level breaking down would of course open up the possibility of a move down to the $20 level, and possibly even further to the downside. If we do break the $22 level, the bullish run in silver would be all but over. In the short term though, certainly looks as if we have more upward pressure than down and if we get the reopening trade, it is very likely that we would see silver demand pick up.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Forecast – Silver Markets Form Shooting Star

Silver markets continue to see a lot of resistance just above, and I think it will be very difficult to see this market go higher. If we break above the $26.50 level, then it allows the silver market to go looking towards the $28 level. However, if we break down below the 50 day EMA, it is likely that we will then drop down to the $25 level underneath. That of course would send this market even lower possibly, as the market is likely to see the market move rather quickly if that happens.

SILVER Video 19.04.21

Pay close attention to the US dollar and yields in America, because they tend to be intertwined, and that of course will be negatively correlated to this market. Silver does have a certain amount of industrial demand built into it, so that is something that needs to be paid close attention to. If we continue to see the “reopening trade” eventually silver should get a bit of a boost. Nonetheless, J.P. Morgan and a few other banks have been artificially suppressing the paper markets for years and have even been fined multiple times. Because of this, it does slow the assent of silver in general, but longer-term the fundamentals will eventually take over.

Underneath, if we were to break down below the $24 level, that could send this market down towards the $22 level after that, an area that should be significant support. That is the “floor the market” from what I can see, so if we were to break down below there it is likely that we will fall apart rather rapidly.

For a look at all of today’s economic events, check out our economic calendar.

Gold: You Can Win a Battle, but Still Lose the War

And so, it happened. Gold moved right to its target level that seemed to be the max that it could reach, but that didn’t seem to be the most likely outcome. Just because it wasn’t the most likely outcome, doesn’t make it impossible. The “most likely” can happen all the time – after all its only “most likely” not “certain” or “inevitable”.

Gold declined right after its triangle-vertex-based reversal, but it appears that the market participants didn’t want to give up on the bullish tone until gold finally reached its previous lows and highs.

Just like magnets, the strong support and resistance lines draw investors and traders, and it seems that we saw this play out once again.

Chart, histogramDescription automatically generated

Gold moved slightly above its upper border of the near-perfect flag (zigzag) pattern and this small breakout is not completed. This particular breakout is not even close to being as important as the fact that the previous very strong resistance held yesterday (Apr. 15).

Why? Because the level that was just reached – the $1,770 level – is the level that provided strong resistance in mid-2020 (several times) and it provided strong support in late-2020 and early 2021. These were mostly very important reversals, which make this price level particularly important.

Moreover, the current move higher to this level is symmetrical to what we saw in mid-2020. Consequently, even though this week’s rally might seem like a game-changer, it very likely isn’t one.

But miners moved higher, and they invalidated the breakdown below the neck level of the broad head-and-shoulders formation!

…Did they, though?

ChartDescription automatically generated

Mining Stocks: GDX and GDXJ

The GDX ETF did indeed close yesterday above the dashed line that I used to mark the neckline of the head and shoulders pattern. One might view this as an invalidation of the breakdown, and thus a bullish sign. This doesn’t add up with gold’s inability to move above its critical resistance at $1,770, and we see that miners moved only to the line that’s symmetrical to the line based on the recent bottoms.

In yesterday’s intraday Alert , I wrote the following:

Mining stocks are rallying too, but please note that they only reached their upper border of the zig-zag pattern. Back in early January, this was exactly where the rally had ended. The top formed on huge volume and based on the volume that we already see today, it’s almost certain that the volume for today’s session will be huge – just like what we saw at the January top.

I realize that waiting for the next big slide is exhausting and discouraging, and it’s not easy to hold on to the current trading position. However, the outlook didn’t change, and the situation continues to fit the bearish narrative despite today’s intraday upswing. Consequently, exiting positions now seems not only pre-mature, but actually opposite to what appears to be a good trading move from my point of view. After all one wants to sell or short at the tops and tops can only form after rallies.

The above remains up-to-date. Let’s get back to the reason why this invalidation of the breakdown in the GDX might not really mean the true, meaningful invalidation of the breakdown in miners in general. The reason is that other proxies for the mining stocks sector don’t confirm it.

ChartDescription automatically generated

The GDXJ ETF is relatively far from the neck level (which I marked with a thick, black line). On a side note, the breakout that we saw recently (above the short-term declining resistance line) seems similar to the breakout that we saw in January – above the line that was important back then. Just as the January strength turned into declines, I expect to see the same thing this time.

Let’s move to the two key indices for the mining stocks sector, the HUI and the XAU indices .

Chart, line chartDescription automatically generated

ChartDescription automatically generated

In neither of them did we see the invalidation of the breakdown. Consequently, the GDX ETF is the odd one out in the entire pack, not to mention the lack of a breakout in gold. Therefore, it seems prudent not to give particular meaning to what happened in the GDX ETF alone.

Silver

And what about silver’s outlook ?

Chart, histogramDescription automatically generated

Nothing really changed despite yesterday’s strength. Just as was the case in March 2020, silver is correcting after a visible decline. Back in March 2020, the correction ended between the 200-day (red) and 50-day (blue) moving averages. The same is happening right now. Silver’s 50-day moving average is currently at $26.15 and the white precious metal closed at $25.96.

All in all, it seems that quite a lot happened yesterday, but nothing really changed as far as the outlook for gold is concerned.

Thank you for reading our free analysis today. Please note that the above is just a small fraction of today’s all-encompassing Gold & Silver Trading Alert. The latter includes multiple premium details such as the targets for gold and mining stocks that could be reached in the next few weeks. If you’d like to read those premium details, we have good news for you. As soon as you sign up for our free gold newsletter, you’ll get a free 7-day no-obligation trial access to our premium Gold & Silver Trading Alerts. It’s really free – sign up today.

For a look at all of today’s economic events, check out our economic calendar.

Przemyslaw Radomski, CFA
Founder, Editor-in-chief
Sunshine Profits: Effective Investment through Diligence & Care

* * * * *

All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits’ associates only. As such, it may prove wrong and be subject to change without notice. Opinions and analyses are based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are deemed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski’s, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Silver Price Daily Forecast – Test Of Major Resistance At $26.25 – $26.30

Silver Video 16.04.21.

Silver Moves Higher Ahead Of The Weekend

Silver gained upside momentum and tested the resistance level in the $26.25 – $26.30 area while the U.S. dollar remained under pressure against a broad basket of currencies.

The U.S. Dollar Index settled below the 50 EMA at 91.80 and is trying to settle below the support level at 91.50. In case this attempt is successful, the U.S. Dollar Index will head towards the next support at 91.30 which will be bullish for silver and gold price today. Weak dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Gold managed to get above the 50 EMA at $1760 and continues its upside move. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge. If gold manages to get to the test of the $1800 level, silver will get more support.

Gold/silver ratio has recently made an attempt to settle below the 68 level. A move below this level will open the way towards the major support level at 67 which will be bullish for silver.

Technical Analysis

silver april 16 2021

Silver has recently made an attempt to settle above the major resistance area at $26.25 – $26.30 but failed to develop sufficient upside momentum. If silver manages to settle above this level, it will head towards the next resistance level which is located at $26.65.

A successful test of the resistance at $26.65 will open the way to the test of the next resistance at $27.00.

On the support side, the previous resistance level at $25.85 will likely serve as the first support level for silver. In case silver declines below $25.85, it will move towards the 50 EMA at $25.70.

A move below the support at the 50 EMA at $25.70 will push silver towards the next support level which is located at $25.55. If silver manages to settle below this level, it will head towards the support at the 20 EMA at $25.40.

For a look at all of today’s economic events, check out our economic calendar.

Strong Economic Reports From China Boost Markets

China’s GDP Grew By 18.3% Year-Over-Year In The First Quarter

S&P 500 futures are moving higher in premarket trading as traders cheer positive economic data from China.

China reported that its GDP grew by 18.3% year-over-year in the first quarter. Analysts expected that China’s GDP would grow by 19%.

A year ago, China was hit by the first wave of the coronavirus pandemic, and its economy managed to quickly recover from this blow. Retail Sales grew by 34.2% year-over-year in March, while Industrial Production increased by 14.1%.

The data looks so strong because it is compared with a weak first quarter of 2020, but the speed of the recovery is still remarkable. Positive economic reports from China provided significant support to commodity markets and also boosted global equity markets.

Gold Gets To Monthly Highs As Treasury Yields Move Lower

Gold managed to get above the resistance at the 50 EMA at $1760 and gained additional upside momentum as Treasury yields remained under pressure following the release of strong economic data in the U.S.

Currently, gold is moving towards the $1800 level. Silver is also moving higher and is trying to settle above the significant resistance in the $26.25 – $26.30 area. In this light, shares of gold and silver miners will have a strong start of today’s trading session.

Housing Starts Increased By 19.4% In March

The U.S. has just released Building Permits and Housing Starts reports. Building Permits increased by 2.7% month-over-month in March compared to analyst forecast which called for growth of 2.9%.

Housing Starts grew by 19.4% in March after declining by 11.3% in February. Analysts expected that Housing Starts would grow by 11.2%.

The reports indicated that the housing market continued to grow after a pause in February. This is not surprising as the U.S. economy got an additional boost from the new round of economic stimulus.

Today, traders will also have a chance to take a look at Consumer Confidence data for April. Analysts expect that Consumer Confidence will increase from 84.9 in March to 89.6 in April.

For a look at all of today’s economic events, check out our economic calendar.

Daily Gold News: Friday, Apr. 16 – Gold Breaking Higher

The gold futures contract gained 1.76% on Thursday, as it broke above its short-term consolidation. Early in the month the market has bounced from the support level marked by March 8 local low of $1,663.30. In early March yellow metal’s price was the lowest since last year’s June. Today gold is trading higher again, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is 0.8% higher this morning, as it is extending yesterday’s advance following better-than-expected economic data announcements, stocks and cryptos rally. What about the other precious metals? Silver is 1.3% higher, platinum is 0.4% higher and palladium is 0.7% higher today. So precious metals are higher this morning.

Yesterday’s important Retail Sales release has been much better than expected at +9.8%. Today we will get Building Permits/ Housing Starts and the UoM Consumer Sentiment releases.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for today:

Friday, April 16

  • 8:30 a.m. U.S. – Building Permits, Housing Starts
  • 10:00 a.m. U.S. – Preliminary UoM Consumer Sentiment, Preliminary UoM Inflation Expectations
  • All Day, Eurozone – ECOFIN Meetings, Eurogroup Meetings

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.

* * * * *

Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

 

Metal Prices Hit Multi-Year Highs – What’s Next?

Silver, Copper, Palladium and other industrial metals are off to an impressive start in Q2, 2021, driven by a big surge in Green Energy and Infrastructure spending this year.

There are plenty of reasons why commodities are on the move, but the predominant driver is a vaccine-led recovery fuelled by massive amounts of global stimulus into green energy and infrastructure projects. This is against a backdrop of tightening supply across many key commodities following years of under investment. These developments increasingly drive expectations that we have entered a new dawn for commodities, confirming the prospect for a new supercycle.

A supercycle is a long-term period where commodities trade well above they’re typically trend. This upwelling in commodity prices can have effects on other economic indicators, such as inflation. The last supercycle occurred in the early 2000s – when countries such as India and China began investing billions of dollars into mega infrastructure projects, which required an abundance of industrial metals. This sent commodity prices to record highs.

Now in 2021, its America’s turn to step up with President Biden’s Build Back Better Plan to transform the U.S. economy.

Similar to the $1.9 trillion stimulus plan signed only a few weeks ago – Biden’s new package will involve pumping hundreds of billions of dollars into improving the nation’s aging roads, bridges, schools, railways, waterways, airports and cellular network.

One of the highlights was $174 billion investment into Electric Vehicles and billions more for renewable energy initiatives – with the goal to build a national network of 500,000 electrical vehicle charging stations by 2030.

Biden’s massive Green Energy and Infrastructure spending plan, ultimately means that the U.S is going to need more commodities.

Specifically industrial metals and lots of them including: Copper, Palladium, Platinum, Silver, Lithium, Nickel and rare earth metals for batteries and 5G technology.

However, supply is limited – which is yet another indication that we could be on verge of a new supercycle in commodities as demand outstrips supply this year.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

Gold and Silver Surge As Yields Drop And Geopolitical Tensions Rise

As of 4:40 PM EST gold futures basis the most active June 2021 Comex contract is currently trading up $28.10 (+1.62%) and is fixed at $1764.40. Silver basis the most active May 2021 Comex contract, is currently trading up $0.40 (+1.57%) and fixed at $25.925.

gold april 15

The economy in the United States is exhibiting solid economic recovery which has raised genuine concerns that inflation will continue to rise. However, the largest force moving both gold and silver higher is yields dropping in 10-year notes, which fell today to yield 1.56%.

silver april 15

In addition to that, there is rising tension between the United States and China, as well as between the United States and Russia. In regards to the increased tension with China, it seems that Taiwan is once again a major concern to the current administration.

In addition, President Joe Biden today signed an executive order imposing new sanctions on Russia based on information suggesting that they had interfered with our election as well as an increased amount of internet hacking and other “malign activities” which include sending additional troops to Ukraine as well as the continuation of persecution of Russian dissidents in specifics to Alexei Navalny.

On April 15, the White House issued an “Executive Order on Blocking Property with Respect to Specified Harmful Foreign Activities of the Government of the Russian Federation.” The full Executive Order can be read by following this link.

The Executive Order is sanctioning Russia with financial sanctions, including a ban on U.S. financial institutions from participating in the primary market for the ruble as well as non-ruble denominated bonds. It also designates six technology companies run by Russia, accusing them of supporting the country’s intelligence services and block the property that they or their affiliates might detain in the United States, among other sanctions.

This Executive Order is certainly indicating that the administration is willing to impose rigid and far-reaching new sanctions against Russia.

Lastly, there is the issue of growing debt based upon the expenditures over the last two years in regards to reigniting the economy in the United States, which has been so severely affected by the pandemic. These events collectively could certainly be the impetus for both gold and silver to continue to rise higher as they have in trading today.

For more information on our service, simply use this link.

Wishing you, as always, good trading and good health,

Gary Wagner

 

Silver Price Forecast – Silver Markets Break 50 Day EMA

Silver markets have rallied during the trading session on Thursday to break above the 50 day EMA. Ultimately, this is a market that looks as if it has been trying to form some type of base, as we have bounced significantly from the 200 day EMA, and then of course the $25 level. If we can break above the recent highs from a couple of months ago, then the market is likely to go much higher. At this point on, the market is likely to see pullbacks as buying opportunities and therefore it looks as if silver is ready to turn around and go higher, perhaps reaching towards the $28 level.

SILVER Video 16.04.21

To the downside, if we were to break down below the $24 level, something that is not going to happen in the short term, then the market is likely to break down towards the $22 level. The $22 level is the bottom of the overall uptrend and breaking down below that could send this market much lower, perhaps opening up a massive selling opportunity. That being said, the “reopening trade” suggests that there will be a lot of industrial demand going forward, and that of course is a major driver of where silver goes. All things been equal, this is a market that I think is trying to make a move, but it is obvious that we will continue to see noisy behavior. Longer-term, I am bullish on silver, but I also recognize that you need to be very cautious about your position size as silver tends to be extraordinarily volatile. With that in mind, scale into a position only when it works out.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Silver Gains Ground As Treasury Yields Move Lower

Silver Video 15.04.21.

Silver Tests The 50 EMA

Silver is currently testing the resistance at the 50 EMA at $25.65 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle below the support at 91.50 but failed to develop sufficient downside momentum. As a result, the U.S. Dollar Index remains in the range between the support at 91.50 and the resistance at the 50 EMA at 91.80. If the U.S. Dollar Index settles below 91.50, it will move towards the next support at 91.30 which will be bullish for silver and gold price today.

Gold is also moving higher today as Treasury yields move lower. Currently, the yield of 10-year Treasuries is trying to move below 1.59%. If Treasury yields continue to move lower, precious metals will get more support. Meanwhile, gold is testing the resistance at the 50 EMA at $1755. In case gold manages to settle above this level, it will gain additional upside momentum which will be bullish for silver and other precious metals.

Gold/silver ratio managed to get below the support at the 50 EMA at 68.60 and is testing the 68 level. If this test is successful, gold/silver ratio will move towards the major support at the 67 level which will be bullish for silver.

Technical Analysis

silver april 15 2021

Silver gained strong upside momentum and managed to get above the 50 EMA at $25.65. The next resistance level is located at $25.85.

In case silver manages to settle above this level, it will move towards the resistance at $26.25 – $26.30. A successful test of this level will open the way to the test of the resistance at $26.65.

On the support side, a move below the 50 EMA will push silver towards the support at $25.55. If silver gets below this level, it will head towards the 20 EMA which is located at $25.35.

A successful test of the support at the 20 EMA will push silver towards the support at $25.20. If silver declines below this level, it will move towards the support at $25.00.

For a look at all of today’s economic events, check out our economic calendar.

Daily Gold News: Thursday, Apr. 15 – Gold Higher Ahead of Data Releases

The gold futures contract lost 0.65% on Wednesday, as it further extended its short-term consolidation. The market has bounced from the support level marked by March 8 local low of $1,763.30. In early March yellow metal’s price was the lowest since last year’s June. Today gold is trading higher again, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is 0.6% higher this morning, as it is retracing yesterday’s decline. What about the other precious metals? Silver is 0.6% higher, platinum is 1.5% higher and palladium is 1.8% higher today. So precious metals are higher this morning.

The markets will be waiting for the important Retail Sales release at 8:30 a.m. We will also have Philly Fed Manufacturing Index, Unemployment Claims, Industrial Production and

Business Inventories announcements today.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Thursday, April 15

  • 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m , Philly Fed Manufacturing Index, Unemployment Claims
  • 9:15 a.m. U.S. – Industrial Production m/m, Capacity Utilization Rate
  • 10:00 a.m. U.S. – Business Inventories m/m, NAHB Housing Market Index
  • 11:30 a.m. U.S. – FOMC Member Bostic Speech
  • 2:00 p.m. U.S. – FOMC Member Daly Speech
  • 10:00 p.m. China – GDP q/y

Friday, April 16

  • 8:30 a.m. U.S. – Building Permits, Housing Starts
  • 10:00 a.m. U.S. – Preliminary UoM Consumer Sentiment, Preliminary UoM Inflation Expectations
  • All Day, Eurozone – ECOFIN Meetings, Eurogroup Meetings

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.

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Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

 

Silver Price Forecast – Silver Markets Stall at 50 Day EMA

Silver markets have gone back and forth during the course of the trading session on Wednesday, as the 50 day EMA has offered a significant amount of resistance. That being said, the market is likely to continue the overall consolidation that we have seen over the last couple of days. If you remember, I recently stated that if we could close above the 50 day EMA on a daily chart, that might be something worth buying, but at this point time we simply do not have the momentum to make that happen. I think that we continue to chop back and forth in this area until we find some type of reason to go higher or lower, and it is probably also worth noting that we are sitting between the 50 and the 200 day EMA indicators.

SILVER Video 15.04.21

The US dollar of course will have a significant effect on silver as well, so having said that I think what you are looking at is a scenario that is going to be choppy and noisy to say the least. Ultimately, this is a market that I think is trying to find its footing, and that takes time. However, if we were to break down below the $24 level, that could open up fresh selling. At that point, I would anticipate that the market may have to go to the $22 level underneath as it is the next major support level. With that being the case, I still would not get overly bearish, at least not until we break down below the $22 level. If that level gets slammed underneath, then silver will sell off quite drastically.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Silver Is Losing Ground As Treasury Yields Rebound

Silver Video 14.04.21.

Silver Pulls Back After Yesterday’s Upside Move

Silver faced resistance near $25.55 and pulled back while the U.S. dollar remained under pressure against a broad basket of currencies.

The U.S. Dollar Index managed to settle below the support at the 50 EMA at 91.80 and is trying to develop additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will head towards the next support at 91.50 which will be bullish for silver and gold price today. Weak dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Gold pulled back towards the nearest support level at the 20 EMA at $1735. This level has been tested several times in recent trading sessions and proved its strength. In case gold declines below the 20 EMA, it will head towards $1720 which will be bearish for silver.

It should be noted that Treasury yields are rebounding after yesterday’s downside move, which is a bearish catalyst for precious metals.

Meanwhile, gold/silver ratio is testing the support at the 50 EMA at 68.60. If gold/silver ratio settles below the 50 EMA, it will gain downside momentum which will be bullish for silver.

Technical Analysis

silver april 14 2021

Silver did not manage to settle above the resistance at $25.55 and declined towards the nearest support level at the 20 EMA at $25.30. The next support level is located at $25.20, so silver will likely get material support in the $25.20 – $25.30 area.

If silver settles below the support at $25.20, it will head towards the next support level at $25.00. A successful test of this support level will open the way to the test of the next support at $24.70.

On the upside, the nearest resistance level for silver is located at $25.55. If silver gets above this level, it will get to the test of the 50 EMA at $25.65. A move above the 50 EMA will push silver towards the resistance at $25.85. If silver manages to settle above this level, it will move towards the $26.25 – $26.30 resistance area.

For a look at all of today’s economic events, check out our economic calendar.

Australian Dollar On The Rise

Gold traders are fighting to keep the bullish dream alive and they’re trying to create the right shoulder of the Inverse head and shoulders pattern. A breakout of the neckline can possibly bring serious bullish sentiment.

Silver bounced from a crucial support on the 24.8 USD/oz.

Brent oil broke the mid-term down trendline and is aiming higher.

The Dow Jones is in the third wedge pattern in a row. The previous two ended in an upswing.

The EURUSD climbed back above the 23.6% Fibonacci.

The GBPUSD wasted a great chance for an upswing and failed to break the neckline of the inversed head and shoulders pattern.

The AUDUSD on the other hand, is very close to activating the buy signal from its own inversed head and shoulders formation.

The USDCAD is locked in a tight rectangle below major down trendlines.

The GBPAUD is in a sweet long-term sell signal, after the price created a head and shoulders pattern at the end of the wedge. A breakout of the lower line of the wedge opens a way towards new mid-term lows.

For a look at all of today’s economic events, check out our economic calendar.

Daily Gold News: Wednesday, Apr. 14 – Gold’s Consolidation Despite Rallying Stocks, Cryptos

The gold futures contract gained 0.86% on Tuesday, as it fluctuated within a short-term consolidation despite rallying stock market, cryptocurrencies. The market has bounced from the support level marked by March 8 local low of $1,763.30. In early March yellow metal’s price was the lowest since last year’s June. Today gold is trading along yesterday’s daily close, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is 0.2% lower this morning, as it is trading within a relatively small daily range. What about the other precious metals? Silver is 0.04% higher, platinum is 1.9% higher and palladium is 0.2% lower today. So precious metals are mixed this morning.

Yesterday’s CPI release has been slightly higher than expected at +0.6%. Today the markets will be waiting for the Fed Chair Powell speech at 12:00 p.m.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Wednesday, April 14

  • 10:00 a.m. Eurozone – ECB President Lagarde Speech
  • 12:00 p.m. U.S. – Fed Chair Powell Speech
  • 2:00 p.m. U.S. – Beige Book
  • 2:30 p.m. U.S. – FOMC Member Williams Speech
  • 3:45 p.m. U.S. – FOMC Member Clarida Speech
  • 4:00 p.m. U.S. – FOMC Member Bostic Speech
  • 9:30 p.m. Australia – Employment Change, Unemployment Rate

Thursday, April 15

  • 8:30 a.m. U.S. – Retail Sales m/m, Core Retail Sales m/m , Philly Fed Manufacturing Index, Unemployment Claims
  • 9:15 a.m. U.S. – Industrial Production m/m, Capacity Utilization Rate
  • 10:00 a.m. U.S. – Business Inventories m/m, NAHB Housing Market Index
  • 11:30 a.m. U.S. – FOMC Member Bostic Speech
  • 2:00 p.m. U.S. – FOMC Member Daly Speech
  • 10:00 p.m. China – GDP q/y

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.

* * * * *

Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

 

Gold Prices Surge As U.S Inflation Heats Up – What’s Next?

Gold prices surged on Tuesday from their lowest level in more than a week after a sharp rise in U.S inflation boosting the metal’s appeal as an inflation hedge.

The Consumer Price Index, which measures the change in what customers pay for goods and services such as groceries, clothing and gas, climbed 0.6% in March – it’s biggest monthly increase since August 2012. This report follows last week’s PPI data, which showed producer prices rose 4.2% annually, the fastest pace since September 2011.

The U.S government and Federal Reserve’s massive quantitative easing programs have started to draw criticism and raise concerns about the long-term risks of overspending and overstimulating the economy at such an aggressive pace.

Inflation will remain the hot topic this week with Federal Reserve Chair Jerome Powell speaking at the Economic Club of Washington on Wednesday.

So far, Jerome Powell has artfully dodged questions relating to the rapid rise in inflation, stating that any price acceleration will be temporary. But policy makers will have to address this problematic issue eventually before it snowballs into something they can no longer control.

Another macro event that has lend support to gold prices this week was news that U.S health officials’ have halted the use of Johnson & Johnson’s COVID-19 vaccine, due to blood clotting occurrences in a few recipients.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.