Gold shot above $3,500 yesterday and ended the session at a new all-time closing high of $3,530. It inched up again in early trade today to make a fresh all-time intra-day high of $3,560.
Source: TN Trader
The current price resilience suggests that safe-haven demand remains strong, with traders choosing to hold gold as protection against a host of uncertainties including President Trump’s tariffs, fiscal policy across major economies and rising bond yields, which keeps upside pressure on borrowing costs. It is worth noting that yesterday’s strong gains were made and sustained even as the US dollar soared.
This is a stark reminder that correlations are often little more than coincidences, and that markets move to the beat of their own drums. It will be interesting to see if $3,500 holds as support on any pullback. Although $3,450 is a far more technically significant number.
Silver has put in a strong performance so far this week, having hit a fresh fourteen-year high overnight. Pullbacks have been bought into, and investors are considering if the rally has legs, with $41 the next upside target.
The strong upside momentum of recent weeks has seen the daily MACD surge higher. But it has yet to reach the ‘overbought’ levels seen earlier in the summer. Traders continue to speculate that, should the uptrend hold, silver could take out its record high just below $50 per ounce from April 2011. That’s certainly a possibility, but it may need a pullback, or lengthy consolidation, to reset the MACD first.
