[ChartWatch] Is the US Election the “Cork in the Bottle” for Gold and Silver?

Today we are taking our weekly look at the charts for gold and silver.

Republicans and Democrats continue to play the “will they, won’t they?” game over another stimulus package in a Covid19 ravaged US economy. An agreement on a package will ultimately be seen as positive for the markets but, with the US Election just weeks away this may prove to prolong negotiations or postpone decisions until the results of the election are clear and accepted by all.

Will Gold Now Retest $1,930?

As you can see from the gold chart below, gold has rallied on positive stimulus news and pulled back as negotiations stall.

After the previous “false break” above $1,910, gold once again closed above this level which opens up a retest of $1,930. However, the short-term upward trend line is providing support but is also helping to form what most chartists recognise as a bearish pattern.

GoldCore Gold Chart

A break of this support trend line opens up a retest of the $1,860 level and a break of that level would be short-term, bearish for gold as there is not much in the way of support until $1,810.

Silver Remains Vulnerable to a Negative News Cycle

A similar pattern is emerging for silver as it retest $25.20.

A close above this level could be short-term bullish for silver and see a quick move up to test the $26.50 level again.

GoldCore Silver Chart

With this bearish pattern being formed with the upward sloping trend support line, silver remains vulnerable to a negative news cycle. A break lower opens up a retracement to the support level at $22.60.

As we have noted before if we break this level there is not much support on the charts until near the 200 Day Moving Average at $19.50.

Clarity on the US Stimulus package will help signal the next move in the precious metals markets. However, this now may not happen until we get clarity on the result of the US election.

When the cork is popped we expect this to be very bullish for both gold and silver. Now might be a great opportunity to position your portfolio to take advantage of the upcoming moves.

NEWS and COMMENTARY

Stocks and bonds yields climb as investors eye U.S. stimulus

Gold gains on renewed hopes of U.S. stimulus deal, weaker dollar

A ‘blue wave’ in U.S. elections could bring forward Fed rate hikes, says Morgan Stanley

Access Latest Goldnomics Podcast (Part II) Here

GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

20-Oct-20 1906.35 1898.40 1469.61 1464.05 1615.44 1606.43
19-Oct-20 1910.00 1905.60 1468.41 1465.60 1624.65 1617.47
16-Oct-20 1908.20 1905.05 1475.42 1475.46 1629.22 1624.25
15-Oct-20 1891.70 1891.90 1460.01 1462.06 1615.89 1617.57
14-Oct-20 1896.45 1910.05 1466.15 1464.63 1616.91 1624.12
13-Oct-20 1920.80 1891.30 1471.33 1457.06 1629.03 1608.74
12-Oct-20 1891.35 1887.45 1460.12 1460.70 1608.03 1607.73
09-Oct-20 1912.40 1923.25 1478.48 1482.63 1620.76 1628.99
08-Oct-20 1891.35 1887.45 1460.12 1460.70 1608.03 1607.73
07-Oct-20 1888.00 1884.50 1464.33 1463.69 1605.56 1601.83
06-Oct-20 1912.50 1913.40 1472.82 1476.00 1623.33 1623.90
05-Oct-20 1899.65 1909.60 1467.48 1472.49 1616.41 1620.49
02-Oct-20 1906.40 1903.05 1473.46 1471.82 1627.87 1624.44
01-Oct-20 1895.55 1902.00 1477.01 1476.33 1615.96 1619.74

Buy gold coins and bars and store them in the safest vaults in Zurich, Switzerland with GoldCore.

Learn why Switzerland remains a safe-haven jurisdiction for owning precious metals. Access Our Most Popular Guide, the Essential Guide to Storing Gold in Switzerland here

Receive Our Award Winning Market Updates In Your Inbox – Sign Up Here

Mark O'Byrne

Also on news-goldcore-com

Videos

Chris Vermeulen on Gold: This Is A Super Cycle At Play

Patrick Karim, Charts and Gold’s Next Breakout

Gold Down $100? This Really Shouldn’t Be A Surprise

Blog posts

Chris Vermeulen on Gold: This Is A Super Cycle At Play

When we woke up to see gold had hit an all-time high overnight we knew we needed to take a look at some charts. And who better to do that with than technical analyst Chris Vermuelen of TechnicalTraders.com.  GoldCore CEO, Dave Russell took some time this afternoon to speak with Chris about what took the […]

READ MORE

Gold Hits Record High: Is This A New Era?

Overnight gold stunned markets by obliterating resistance levels and rocketing up to a new all-time high of $2,148.99.  As well as a new level we might also have seen a new standard in volatility being set as the yellow metal experienced $100 intraday swings.  This morning gold has calmed itself down a bit. But make […]

READ MORE

Will The Gold Price Shift As Two Great Titans Leave Us?

For much of November gold has been on a tear and this week investors have sent it way up, punching past $2000. Will these giddy heights of over $2,000 be how gold chooses to see out month-end? At the time of writing we cannot be sure.  Yesterday prices did soften ever so slightly but the […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Chris Vermeulen on Gold: This Is A Super Cycle At Play

Patrick Karim, Charts and Gold’s Next Breakout

Gold Down $100? This Really Shouldn’t Be A Surprise

Blog posts

Chris Vermeulen on Gold: This Is A Super Cycle At Play

When we woke up to see gold had hit an all-time high overnight we knew we needed to take a look at some charts. And who better to do that with than technical analyst Chris Vermuelen of TechnicalTraders.com.  GoldCore CEO, Dave Russell took some time this afternoon to speak with Chris about what took the […]

READ MORE

Gold Hits Record High: Is This A New Era?

Overnight gold stunned markets by obliterating resistance levels and rocketing up to a new all-time high of $2,148.99.  As well as a new level we might also have seen a new standard in volatility being set as the yellow metal experienced $100 intraday swings.  This morning gold has calmed itself down a bit. But make […]

READ MORE

Will The Gold Price Shift As Two Great Titans Leave Us?

For much of November gold has been on a tear and this week investors have sent it way up, punching past $2000. Will these giddy heights of over $2,000 be how gold chooses to see out month-end? At the time of writing we cannot be sure.  Yesterday prices did soften ever so slightly but the […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE