Silver hit a fresh all-time high yesterday, coming within two cents of $59 per ounce. But it proceeded to turn sharply lower from there, dropping 4% to $56.62 soon after the European open. This was another demonstration of the kind of volatility one can expect when silver gets going.
The question now is whether this is a buying opportunity ahead of fresh all-time highs, or if silver has peaked? The daily MACD has turned down a touch from overbought levels. This would suggest that prices need to correct further to find a base from which silver can push higher.
But shorter-term MACDs suggest that silver is oversold, which raises the possibility of a bounce. But there’s no doubt that volatility has picked up in silver, and traders must be extremely nimble whether they are playing over the short or longer term.
Source: TN Trader
Gold began this week on the front foot as it rallied to $4,265, its best level since 21st October. Prices had been pushing higher since trading at their post-record lows at the end of October. But unlike the slow and steady progress to all-time highs throughout September and early October, the recent daily price action has proved to be far choppier and less assured.
Despite this, it looked as if gold had a decent chance of retesting its October all-time high of $4,380. But this week, gold has moved sideways, albeit with a lower bias. This may have kept the daily MACD down at levels from which a rally can build, but it has failed to boost investor confidence. Despite this, gold hasn’t reacted to silver’s sharp increase in intra-day volatility.
