Market Report for Jan 1, 2020
Happy New Year! It’s Friday January 1, 2021 and this your Gold, Silver, and Bitcoin market report! Markets are closed today. Gold closed up +1.89% this week to $1,893.09. Silver also closed higher, up +1.97% to $26.33. Bitcoin had another spectacular week, closing the 2020 year at $29,001.72.
Gold Chart
Gold closed the year closer to the $1,900 level contrary to our call to be closer to the $1,800 level. Gold Bulls wanted to finish the year strong and they did, however the Bears stopped them just shy of the magic $1,900 level. This does not bode well for Gold Bulls as the resistance is becoming too strong. I suspect that over the next few weeks our models might generate a new resistance line.
Our models are predicting a flat close for Gold next week to the $1,890 level. As we wrote before, Gold appears to be a fair value at these levels and any massive price swings above or below this level indicates froth or value. Proceed with caution.
Weekly Gold Chart with Support and Resistance Lines
Silver Chart
Silver broke through the $26 barrier last week but Silver Bears stopped the advance to $27. While the chart patterns look like Silver broke out of it’s multi-week range, our models show extreme volatility in the coming weeks. Silver will attempt to test the $27.61 resistance line and it remains to be seen if the price action can support Silver at those levels.
Silver will continue to be volatile as Silver Bugs start to unload positions to pay for their Christmas gifts.
Weekly Gold Chart with Support and Resistance Lines
Gold to Silver Ratio Chart
The Gold to Silver ratio closed lower last week to the 71.89. This contrary to our model’s prediction of a higher close and is showing that Gold might be running out steam to keep climbing higher. It may also indicate money outflows out of the metals market to the more exciting Bitcoin markets. Our models are forecasting a higher close for the ratio to the 72.90 level for next week.
Gold to Silver Ratio Chart
Btc To Usd Chart
Bitcoin ended the year strong and on a strong up trend trajectory. Our models are point to higher closes for this asset next week to the $29,180 level. In fact, you don’t need a model for Bitcoin, it will continue to go up until something spooks it.
Bitcoin’s price action has a linear move from the mid lower left of the chart to the upper right. While scary to look at from a price perspective, this formation makes me believe that Bitcoin is undergoing a paradigm shift and that the days of $10,000 BTC are long over. Contrast this with parabolic price moves that end as suddenly as they began.
Weekly Bitcoin Chart with Support and Resistance Lines