Silver And Gold Rise, Is Bitcoin Next?

Published 07/21/2020, 05:50 AM

Gold lifted by silver bullets fireworks

Today, all the action is again on silver, which has advanced through USD20.00 an ounce, triggering stop-loss buying, jumping 2.0% to USD20.3150 an ounce. Liquidity is always an issue with silver, being on average much less than is available with gold on any given day. That partially explains why directional silver moves are usually much more aggressive and grander in scale than those with gold.

Having bottomed under USD12.0000 an ounce in March, silver has now risen by some 75.0%. Meantime, the XAU/XAG ratio collapsing from 128.00 to 89.634 today. That multi-month fall in the XAU/XAG ratio has likely provided a steady supply of sellers all the way up in gold, possibly slowing its advance. That was probably the case overnight as well, with the ratio falling by 2.55%.

However, gold has now advanced to USD1819.00 today, with silver’s rally inevitably dragging spot gold higher, despite the ratio selling. A move through USD1820.00 an ounce should see more stop-loss sellers, as well as model-driven buyers hit the market. That could lead to a reasonably rapid spike by gold into the mid-1830s an ounce, reinvigorating gold’s rally.

Bitcoin remains off the radar

Bitcoin has remained entrenched in a USD9000.00 to USD9500.00 range for over a month. The fall in volatility has led to a decline in participation by get-rich-quick FOMO traders, leading to a self-perpetuating negative feedback loop.

With precious metals marching higher, and signs that the V-shaped recovery trade is about to re-energize, Bitcoin looks poised to retest the bottom of its range, as its anarchist safe-haven appeal fades amongst the tin-foil hat, anti-5G brigade.

A failure of the USD9000.00 real fiat-currency support could see Bitcoin spike to the USD8350.00 zone, where both its 100 and 200-DMA’s are currently residing.

Original Post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.