Gold & Silver Market Analysis for Monday 23rd of August

Carlo Alberto De Casa

23/08/2021

The gold price is holding steady, while investors are awaiting the Jackson Hole Symposium.

Gold started the new week in fractional green, with the price continuing to play with the resistance area of $1,785 – 1,790.

Gold price in $/gram from Kinesis exchange - chart - Gold crawling up in green
Gold price in $/gram from Kinesis Exchange

Why is the Jackson Hole symposium so crucial? 

The reason is simple: gold traders, as well as stocks or bond investors, are expecting further guidance in regard to the Federal Reserve’s tapering timeline.

This timing and the method in which the Federal Reserve will scale back from the current monthly purchase volume, will influence the markets as well as the bullion price.

Any dovish indication could help gold to continue its recent rebound, while an expedited beginning of the tapering procedure could be seen as a negative catalyst for bullion.

Technically a clear surpass of the $1,790 resistance zone could lift bullion further up. On the other hand, in the negative scenario, we would see a pullback to $1,750 – 1,760, the first support zone.

Kinesis Silver Analysis

Silver is gaining almost 1% and is traded at $23,3 per ounce. The silver price has created a first support zone at $22,90 and it is trying a challenging rebound.

As a first positive signal, we can observe a clear surpass of the $23,5 resistance zone of $23,5, while the break up of the $24 resistance zone – ideally supported by high volume – would denote a return of bullish momentum.

After weeks of underperforming, the precious metal is doing better than gold, while the ratio of gold to silver is slowing down to 76,8, after having a peak of 77,5 reached on Friday.

The next few days will be decisive in seeing whether this is only a temporary change or if silver is recovering its strength.

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.

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