The bullish trend for gold shows no signs of slowing, with the precious metal breaking away from yesterday’s close at $1517.20 per ounce, and opening this morning gapped up to $1522, since when the move higher has accelerated with the metal now trading at $1545 per ounce. Once again political uncertainty and short term weakness in the US dollar are combining to help gold continue its bullish run, and with a low volume node now ahead on the daily chart, the metal looks set to continue higher. This morning’s move has also broken away from the congestion at $1520 which now provides an excellent platform of support with the trend monitor indicator remaining firmly blue and the yellow trend line rising, and all supported with excellent volume.
The move in Gold has helped to drag silver higher and reverse the recent malaise of the industrial metal which languished at the VPOC at $14.90 per ounce for much of June and July, before finally breaking away on rising volume and through the well developed resistance at $15.20 per ounce. More recently the volatility trigger of the 7th August saw the metal consolidate within the spread of the candle as expected, before this morning’s price action for gold propelled silver higher, and as with gold, towards a low volume node on the daily chart. Note here too, the trend monitor has transitioned to bright blue and supporting the bullish trend higher. Silver is now looking set to move through $17.50 per ounce and on towards $18.00 per ounce in due course, particularly if gold continues to rampage higher.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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