Gold & Silver Market Report for Nov 7, 2020
It’s Saturday, November 7, 2020 and this is your week’s gold and silver market report.
It was a good week for Gold and Silver now that the US elections are over. Although there is still some ballot tallying left to be done, it looks Joe Biden will become the 46th President of the United States. Congratulations!
Markets rallied and Gold and Silver closed higher this week with gains of +3.88% and +8.59% to $1,950.30 and $25.64 respectively.
Gold Chart
Weekly Gold Support and Resistance Chart
Gold charged higher this week on optimism that political stability and quantitative easing will return. Gold also created a strong candlestick for the week and even closed above its resistance line at $1,946.80. This is a good technical sign (a forward indicator) even though the uptrend is slowing. A few more weeks of solid Gold price action and the trend will strengthen again.
Our forecast from last week was wrong as the models pointed to more a contest US election. With a solid performance next week, the risk for closing below $1,800 will start to diminish. Our models show closing next week at or near the resistance line with a price point of $1,946.66. Next will be one to watch if Gold is breaking out or will slip below resistance again. These are exciting times for Gold!
Silver Chart
Weekly Silver Support and Resistance Chart
Silver had a very volatile week and it closed significantly higher from our model forecast last week. A continued strong upward thrust in Silver will diminish the risk that it could sell off to the $17 to $18 range.
Despite this great rally, Silver still hasn’t recovered from the big sell-off 6 weeks ago. Silver will need to rally strong next week and close above $27 level and stay there to confirm that the uptrend remains intact.
For now, the uptrend continues to weaken, an ominous sign. Our models forecast a slightly lower close for Silver next week to the $25.11 price level.
Gold to Silver Ratio Chart
Weekly Silver Support and Resistance Chart
The Gold to Silver ratio closed significantly lower last week to 76.04. This was in line with our forecast for a lower close but the magnitude was greater. This makes sense considering the solid rallies in Gold and Silver. The models forecast a higher ratio close to 80.18, which is pointing to a less volatile market next week for both metals.
VOO ETF Chart
Weekly Silver Support and Resistance Chart
This week we’ll take a look at the VOO ETF, a proxy for the S&P500. It’s always a good thing to look at what else is happening in the asset markets to get a better perspective overall.
The VOO ETF had some pretty volatile times this past September and October, which was to be expected. The US Election and chaos from the Trump Administration concerning the Covid19 response affected the stock market. True to predictions, an incumbent President would not be re-elected if markets were lower on October 31st from where they started on September 1st in an Election Year.
There is a big technical pattern to note from right before the US Election, a Double Top pattern. This is usually a very bearish sign that traders and investors look out for. A break below the support line at 277.11 would indicate the rally is over. However, this week’s market action was positive indeed with several price gap ups to the resistance lines around the 321.00 level but the Doji closes give us pause. The chart is looking like a Triple Top pattern which means the rally in the markets is over. This is a BIG WARNING SIGN.
The next week will set the stage for the rest of the year and if we will have a ‘Santa Rally’ in the stock market. VOO needs to break out and close above its resistance line for the Bull Market to keep going.