Gold & Silver Price Dips Attract New Buyers, Can They Break Out?

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Nov 01, 2019 11:40 NY TimeKitco 10AM Silver Fix

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(Kitc, Fri. Nov. 1st, 2019) – Larger gold prices dips will attract new buyers to the precious metals space, especially with the U.S. economy beating expectations and adding 128,000 new positions in October, says RBC Wealth Management managing director George Gero. “Gold continues to have buyers on larger gold dips, which are expected now with good jobs numbers adding 128,000 vs 75,000 expected,” Gero writes. There are still a lot of geopolitical tensions that support the gold market, he adds. “Continued myriad of worries plague investors globally. Turkey, Argentina, Chile, Middle East, Euro Zone, Brexit and more U.S. politics to name some.” 

Thursday saw gold and silver both have solid rallies. Both closed above our resistance levels and could be on their way to a new trend. Our model did not reverse today although it’s very close to going long. One more close higher would most likely create a buy signal. 

Today is jobs Friday which can create a lot of volatility in the metal, and adding 128,000 jobs this morning indicated continued strength in U.S. employment. The pattern itself is on the cusp of changing from bearish to bullish but are still in congestion. Today’s action could create the next uptrend or confirm that the metals are still in a downtrend. 

We have written about the phases of the markets in the past; right now gold and silver are in congestion. They will breakout one way or the other and currently they are closer to breaking out to the upside. My guess is a rally today will have us reversing Sunday’s night; a sell off will keep us short. 

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com