What Happens To Gold And Silver Next? Look Out Below?

notice how gold, in the overnight future session tested and broke the friday low, bounced and trying for the highs of the session.

Lesson is, dont waste your time watching the overnight sessions UNLESS you are trading futures. What you should observe, if you are going to watch the overnight session is any differences in the overnight session VERSUS what happens when our cash markets open and when gold starts trading on this side of the ocean.

I saw that because it is very common for the futures to reflect something entirely different when we open up here.

Now, let us not count a victory for gold. The area was tested and it did hold. Positive short term. Now, FOLLOW THROUGH is key and important here, the buyers will need to step it up here and push away from this area, starting tomorrow.

What we are looking for first are, in a shorter time frame, a series of higher highs and higher lows, which gets price going higher.

Thanks Yup..it's only the top of the 2nd inning here, so, the game has a long ways to go. Grab some peanuts and beers, and enjoy the journey.

Here are some long term charts.

Nixon closed the gold window on August 15th, 1971 so starting there till now, here are the charts.

This is probably the dumbest question ever asked, but since I don't know, I hope you guys don't mind: How do I buy an Index such as XAU (instead of each individual stock) directly via an online brokerage (I have account with Optionshouse)? IS there an EFT similar to GLD or SLV (for gold and silver)? OR do I have to buy a Mutual Fund that contain XAU?



Thank you.

@SA4H
https://www.thebalance.com/mining-i...etfs-1214762

A few thoughts for today-

Gold- we broke a 2 month range, and yet, we are barely a few points away from the low end of the range, I gotta say that thats not too bad. I was expecting easily a break into the 1300s. Instead, we closed at 1317, two points below the range.

Silver- we broke the lower end, about 2 weeks ago, the 19.60s and are pretty much off a point here as well. Again, not too bad considering we broke lower from a 2 month base, that should have seen a fair amount of selling give way. Remember that saying, the longer the base, the more we blast off into space, that amount of time, the more explosive the move, in whatever direction the range or base it is coming from.

In fact we can see silver has for about a week and a half been trading in a lower narrow range.

Based on price, unless this selling picks up, silver and gold are not that far away from getting back into their low end of their originals bases they came from.

Tomorrow should bring us some clues as to whether the selling continues OR the buyers step up and as always, we come into a Friday tomorrow, so the upcoming week should give us more clarity and we might have to wait until then to see what happens.

You might recall also, IF you been following the price action closely and watching closely gold and silver, even when this uptrend started, gold and silver would break higher into a range, then break below it, fall a little more and then a bid would come in and bring things back on track. To me, thats what this price action is starting to feel like.

so for now, lets just wait and see if buying starts to come in soon.

well, back into the ranges after breaking them last week.

Both gold and silver are making higher highs and higher lows.

Was that it for the dip? Will gold and silver make a run at the yearly highs from here? How will overhead supply from the previous weeks slow down gold and silver? These all will have to be dealt with on the way back up in even in this range.

For now tho, price action is constructive and we have gotten back into the ranges, very similar price action to early in the year.

The final note I want to make is that for the seasonality trackers, this month is one where silver doesn't do well. The way to approach seasonal trend is this- be ware of them, however, always DIFFER first to price action, if it does again seasonal trends, you trust price action over seasonality patterns, always.

@Zack

When it comes to seasonal trends versus price, you always go with price. Nothing trumps price action, not even seasonal trends.

September, in terms of seasonality, is not usually "kind" to silver. However, if the price action in silver is constructive to buying, then throw out seasonality that says "September is bad for silver"

Just because market participants are coming back to the market does NOT mean all assets rise. The LACK of market participants adds to the volatility in assets in July and August, volume levels, as an example, are so pathetic and that is because just about everyone is gone.

Be careful in confusing things, again, dont assume because market participants are back that silver/gold HAS to rise.