Commodities analyses: Gold and Silver

Published 29 August 2018

Investtech analyses a number of commodities and gives buy and sell recommendations every day. Today we have had a closer look at gold and silver. One of these commodities has triggered a sell signal, while horizontal development is indicated in the other.

Silver (SI.FUT) Close: 14.68

The price of silver multiplied tenfold from 2003 to 2011, but has since fallen by approximately 70 per cent. Following sideways development in the past two years, the price broke downwards through support at 15.50 dollars about a month ago. A sell signal has now been triggered from a rectangle formation, after investors have sold at ever lower prices. Further decline is indicated.
Investtech’s recommendation: Negative candidate

Gold (GC.FUT) Close: 1 200.89

The price of gold increased sixfold from 2003 to 2011, but fell significantly in the next two years. Since 2014 gold has fluctuated between 1130 and 1360 dollars. The sideways movement indicates balance between sellers and buyers in the market, and signals continued horizontal development. A break above 1360 dollars will indicate buyer strength and further increase. Similarly a break below 1130 dollars will indicate increasing pessimism and continued fall for the price of gold.
Investtech’s recommendation:  Hold

The recommendations are long term, i.e. an investment perspective of 3-18 months.