Silver and Gold on a Major Buy Signal for Long Term & Short Term

gold silver medallions

Credit: Flickr / Mark Herpel / CC-BY 2.0

The gold and silver markets are featured with a multi-month correction. The gold sector is reportedly on both long-term and short-term buy signals. While the long-term signals are more suitable for investors, the short-term signals are more suitable for traders. It is reported that silver is on a long-term buy signal.

Silver Prices Eclipse $100 per ounce

Stephen Leeb, a renowned Money Manager, said that the spot price of silver could eclipse $100 per ounce. Silver would have to appreciate 450% to touch the $100 threshold.

The demand for silver is high in countries like China and India as the metal features in jewellery, electronics, and infrastructure. Meanwhile, the demand for physical silver in 2017 is strong among retail investors and the U.S. Mint has reported that it had sold out of the Federal Douglas silver coin and experienced demand spikes for the American Silver Eagle coin. Also, the demand for silver bullion (bars and coins) has reportedly reached a 21st-century high.

Gold on the Edge of Breaking Resistance

The bullish phase for gold is reportedly 3% away, and trading analysts are waiting for the all-clear signal. Factors to look out for, when you want profitable investment opportunities in commodities.

  1. The sales are down in gold and silver, and this is backed by Google Trends, where the search quantity of Bitcoin and Ethereum has surpassed that of the metals.
  2. Compare the gold’s price today with that of the-1980 high, based on the CPI formula. The U.S. Government has modified some components of the Consumer Price Index to moderate the appearance of inflation.
  3. Gold reportedly broke the 2011 resistance line, and Sheba Jafari, Chief Technical Analyst for Goldman Sachs came out with a report on gold reaching $1,304-$1,315. Look out gold breaking through the $1,300 mark.

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