This post is also available in: فارسی (Persian)
By: Ahura Chalki
Late follow or unlike Gold?
Today Silver could reach it’s almost 3 years high at 18.08 and seems it is moving up more, for now. Should we consider that as late follow the Gold trend or there is the other reason for that. To get the point, let’s check the silver price mover indexes. The price of silver, first of all, is dependent on the economic situation and factory production data. Last days we had a few positive news after all negative outlook. US-Sino trade talks seem going to get to some point, as both sides realizing there is no winner in keeping it longer, on the other hand, the Japanese also informed that there will be a delay in US tariffs against Japanese cars, so it could be read as a positive prospect for Silver price. On the other side, Silver also can play a safe haven role, but it is not the first option for that, that’s why we can say liquidities moving this side since there is some doubt about the Gold price as one of most important safe havens. Gold moves at more than 6 years high. The market historical memory about Gold can go back to 2011, in almost the same situation, the Gold price moved its highest level above $1900 and then suddenly falling down to $1000. It can be the reason why investors must think twice before investing more than 10-15% of their liquidities on that, so money flows over and can make the Silver price higher. After all, Stocks seem main stocks and indices returning back to the bullish mood, a positive sign for industries, which means more buyers for Silver. It seems all fundamental signs getting together to push it higher, negative or even positive news, Silver trading at a very interesting level, where any news now can move it even higher.
From the technical side, Price moves clearly above daily EMA50 as well as Parabolic SAR, remain of more bullish, however, RSI moves nearby overbought area with correction sign in short term time frames. MACD in the Daily chart just moved abov Zero-level with a positive sign. In middle time frames, RSI is clearly in the overbought area with correction sign.
Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.