Gold & Silver Market Report for Oct 10, 2020
It’s Saturday October 10, 2020 and this is this week’s gold and silver market report. Gold and Silver closed higher in the metals market this week by +0.98% and +4.49% to $1,926.20 and $25.11 respectively. Both metals continue to move higher from the sell off two weeks ago but the price action remains in the shadow of the large candle (sell off) from two weeks ago. If prices continue to move higher then both gold and silver will test their resistance lines in short order.
Gold Chart
Weekly Gold Support and Resistance Chart
Price action for gold this past week was muted until Friday when buyers entered the market and pushed the price of Gold higher. Although gold is off it’s highest levels for the year, it is still near all time highs. This is a good indicator that gold wants to move higher in the long term and test resistance at $19,46.80. However, our price models forecast gold to be lower next week to $1,889.92. It’s a possibility that we haven’t finished consolidation yet and gold could move lower which may indicate that these past two weeks are a ‘dead cat bounce.’ Next week’s price action will be key to watch.
Silver Chart
Weekly Silver Support and Resistance Chart
Silver had another volatile week and remains the metal market ‘du jour.’ Silver buyers and ‘round’ collectors pushed the market higher this week. Sentiment continues to be very positive as many silver investors see any price pullback to be a good opportunity to buy more silver. However, our price models forecast silver to lower higher next week with a target of $23.51. As discussed above, silver too might be acting as a ‘dead cat bounce’ and next week’s price action will confirm or deny this.
We remain bullish for both gold and silver and our long term targets remain $2,500 and $40 respectively.