Just as with our last market update, I must start off touching on silver. Silver has just been on the up and up as of late, ever since the CME outage, the Friday after American Thanksgiving. Silver has very confidently broken through the $60 mark and has shown real resilience over that level. Silver since our last update has hit all time high after all time high, and it seems as though this is the trend that will continue. In speaking with a colleague last week, I was a bit weary of the continued upward motion in silver and was expecting a pull back to a $58ish silver to confirm the continued move upward. We have said it many times, a consolidation or pull back is a sign of a healthy market. Last Friday it seemed as though the market would have said correction, but it very firmly stopped in the high $60s. Since then, the market has been trading between $61 and $64 with there being some support at around the $62 level. Again, I would have expected a correction to $58 where this all started, but the pull back to $60 is what we get before a move to new all-time highs.
All while silver has been front page news, Gold itself has also been on the move. Gold has not mad new all time highs since hitting about $4,380, but it has been trading higher and closer to this level. Gold has traded as high as $4,353, which is very close to its all time high. I have to assume that with the moves in silver, Gold has to have a catchup day where it independently of what silver is doing will move upward, all on its own. The caveat here being that silver stay around the levels it is trading today. As I watch gold kind of fall out of favor with investors, all the while everyone flocks to silver, I would say that Gold is potentially a good buy if you’ve been looking to get into the market.
With the holidays coming next week, I would assume that there will be some erratic market moves as traders take advantage of a thin market. Most retail clients will shift their focus to Christmas and end of year celebrations. If you are looking to get into this market before year end reach out to your Aurica team for assistance.