Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Metals Fight the Doldrums
July 26, 2021 - (Gold Market Wire) - Sometimes a market's biggest challenge can be staying relevant. So it would seem to be these days with Precious Metals. Another day, another paint-drying session. The market won't trend, and even scalping seems to be an undertaking unworthy of the effort. The trend line in Silver is now converging with the horizontal support line, so, we have a chance to glean some information from that upcoming event. But as we try and learn the lessons of the past few weeks, we note, yet again, that it was a spike high (this time on May 18) where the market flamed out to the upside and failed to continue, which marked our high. The last hurrah was there - although, hindsight is, we all know, 20/20. On July 6, Silver performed something of a similar formation - albeit in miniature. All in All - those who swung for the fences got hurt - once more.
Now we're back to the game of even numbers... in this case $25.00, which Silver has been fond of this year. With Gold holding the $1800 level, we seem to be becalmed. The only thing one can say is "Don't Be Long Option Premium!" Sellers of the $25.00 strike are the only winners over the past week, and it looks like they just 'bagged' theta for a Monday as well. Not bad at all if you stayed short all weekend.
In some ways it's an understandable position for the market. The Metals seem hard pressed to move lower, as monetary debasement, out of control government spending and a raft of other problems beset the world of currencies. Gold likes to take an opposite stance, as the pro forma fiat alternative. But, conversely, the US Dollar's strength is keeping Gold bulls in check. This stalemate has made for a dull second half of July.
First we'll see if $25.00 holds the way $1800 has for Gold. We find it interesting that the slow-down in the advancement of the Metals has, once again, been accompanied by the Gold/Silver ratio widening again. That is a pressure on the Bulls, no doubt.
Then, on top of all this, we have to continue to be concerned about the equity market. A crash may not be in the offing (except for China!) but a correction could be forming. The stall out of the NASDAQ has started a retracement yet, though. And that, dear readers, carries a sentiment not unlike the Metals.