Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Springs Back to Life
July 29, 2021 - (Gold Market Wire) - Silver has made a jump off of the trend line we identified yesterday, and it is an impressive one - a true gap higher. The power downtrend has been bettered and the reversal of fortunes is pronounced.
Overall its good news for the metals. Gold's defense of the $1800 level looks like it could be an omen of good things to come, but tomorrow is the last day of the week and the month, and so we wait for the close. Is it a mammoth head-fake - or are institutions loading up before the end of month? That's no more than a 50-50 guess.
On the side of caution our chart shows us that while the Power Downtrend has been broken, we are still in the downtrending channel, as the chart shows. In short, it's too early to claim 'victory', even though things are looking up. We note, as we did yesterday, that the long awaited equities sell-off is still not happening. We are starting to question whether or not it actually will, although, seasonally, we are heading into the stock market crash period of August/September/October.
The power downtrend was too steep to hold for very long, and it's no surprise that buying is coming in now. But we still want to see the down channel give way. That will be the Bulls task for today and tomorrow, and discipline means we must wait for that challenge to be met, before we can think about establishing length.