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.

Written by

Geir Linløkken
Head of Research and Analysis
at Investtech

"Investtech analyses the psychology of the market and gives concrete trading suggestions every day."

Espen Grønstad
Partner & Senior Advisor - Investtech
 


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.

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