Kinesis Gold Analysis
Gold skyrocketed at the finale of Friday’s trading session and started the new week moving steadily, recovering its momentum. Overall, the price is still consolidating above $1,775. Let us analyse the technical situation in depth.
Last week, we saw significant volatility with gold. In early trading, in the night between Sunday 8th and Monday the 9th of August, gold was involved in a flash crash and reached a minimum of $1,677.
In the following hours, we saw a quick recovery. The gold price stabilized between $1,730 and $1,750, consolidating and showing a recovery of interest from investors, trying to buy on dips.
On Friday, the price jumped up to $1,780. This was of course a signal of strength for bullion, helped by some weakness of the greenback. After the US inflation grew in line with forecasts (without exceeding expectations), investors see the start of the Federal Reserve tapering as less urgent. This, of course, is a positive element for bullion.
From a technical point of view, we can now see a support zone between $1,750 and $1,760, while a solid surpass of the resistance zone of $1,790 could open space for further gains for gold.
Over the weekend the political situation in Afghanistan deteriorated drastically, as the Taliban took control of the Nation, while the Afghani president, Ashraf Ghani fled the country. This situation might potentially affect the financial markets and the gold price, which we will find out over the next few days.
Kinesis Silver Analysis
Silver price jumped to $23,7 at the finish of Friday’s trading session. The new week started much more cautiously, with silver’s price slowing down to $23,5. This could indicate that last week's enthusiasm was probably an overreaction, as the recovery was too quick.
From a technical standpoint, silver still appears relatively weak, when compared with gold.
Graphically, silver could find some interesting support between $/oz 23,20 and 23,30, while a new return of prices above $23,7 could be seen as a positive signal.
Carlo Alberto De Casa is Market Analyst for Kinesis.
He also writes as a technical analyst for the Italian newspaper La Stampa.
Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018.
This report is not an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance.