The Precious metals rally as the carnage in the global markets moves into high gear. As forecasted, the gold and silver prices have disconnected from the broader markets, IN A BIG WAY TODAY. While the Dow Jones Index was down more than 500 points, the gold price surged $30 higher and silver surpassed $17.
Are Gold and Silver finally in a new BULL MARKET? Well, certain indicators are giving them the green light. However, nothing goes up in a straight line, so we should be prepared for healthy corrections along with way. But, it’s nice to finally see that fundamentals do matter to traders as the precious metals are some of the best-performing assets in the market today.
As I was watching the silver price action during Asian trading last night, I knew something quite interesting was about to take place. A key level for silver is the 200 Month Moving Average, now at $16.82:
I mentioned this in my newest Youtube video, SILVER PRICE 2019: Key Levels For Continued Breakout[1]. If you have not yet seen it, I highly recommend you do. So, for silver to continue on a new bullish trend, it would have to break through its 200 Month Moving Average (MMA) of $16.82, shown in the red line.
IMPORTANT NOTE: The chart above is by Stockcharts. They do not show intraday price moves for gold and silver. Stockcharts updates its commodity prices after the market has closed. This chart does not show the 50+ cent move in silver today.
During Asian trading last night, silver touched the $16.82 level, and then corrected lower. There is no coincidence that silver bounced off this level, the 200 MMA, last night:
When I checked the...