Gold and Silver Bounce Back as Stock Markets Continue to Struggle

JP Buntinx
March 17, 2020

Despite some massive initial pressure, the gold price appears to be bouncing back rather nicely. This is in line with most other markets noting some positive momentum again, indicating that the mass panic may finally be over. 

Major Markets Recover

Last week was incredibly brutal for all major markets. Stocks have had their worst week since 2008, indicating how much panic there is to contend with. The same negative momentum affected other markets such as precious metals and cryptocurrencies.

Although the markets aren’t out of the woods yet, things are looking better. There is some positive momentum all around, for a change. None of this is confirmation of the panic subsiding by any means, but it shows that people are coming to their senses once again.

A day of positive momentum may prove beneficial to alternative investments. Both cryptocurrencies and precious metals are on the rise again after a very rough week. Undoing all of the damage caused will not be easy, but there is room for cautious optimism. 

Gold Technical Indicators are Promising

When looking at the gold price chart, an interesting situation becomes apparent. For all intents and purposes, this week seemed to be off to a very worrisome start again. At one point, the price per troy ounce hit $1.451, yet shows no signs of going lower as of right now.

That price level coincides with some key technical indicators on the gold price chart. More specifically, the Fibonacci Retracement levels indicated that the 50% Fib would have to act as support. That is never a guarantee for success by any means, but these indicators tend to hold up well overall.

For now, it seems safe to assume that the gold price bounced off the 50% support without any issues. Based on the current momentum, it may have also retaken the 61.8% Fib level in the same go. Some more volatility can be expected near this level for the remainder of the week, as there is still ample work to be done.

Silver Rebounds Sharply yet Remains Volatile

Similar to the gold price, the value of silver shows signs of recovery. It still faces ample bearish pressure, which is only to be expected. Thankfully, there is some positive momentum to take note of.  The silver price has recovered from its dip below $12 per ounce, but struggles to reach $13 under the current circumstances.

In terms of Fibonacci Retracement levels, the current momentum remains a bit indecisive. The market went through a capitulation from the 61.8% fib all the way to below when this initial rally began. That is not a good sign, as it indicates this entire market has reset and will remain relatively volatile for some time to come.

Easily open your Swiss tax free gold vault in under 6 minutes

It’s Free to open a Swiss vaulting account, you can buy and sell gold directly to it instantly.

0 Comments

Trackbacks/Pingbacks

  1. Silver and Gold Prices Move up Strongly as More Mining Operations Shut Down, Bar9 The best way to invest in gold and silver online - […] is rather interesting is how both the silver and gold prices are moving up, and will likely continue to…
  2. Silver Bug Profile: James Turk, Bar9, Simple Wealth Protection - […] is interesting to note how the silver market sentiment of James Turk hasn’t changed in the slightest between 2019…

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Gold Bug Profile: Eric Sprott

It is also worth noting that Eric Sprott sold his first company – known as Sprott Securities – back in 2011. Interestingly enough, the company was purchased by other staff members.

Silver Bug Profile: Mike McGlone

The Senior Commodity Strategist for Bloomberg has built up a strong reputation in the financial sector. His main focus lies with broad investable commodity markets.

Gold Bug Profile: John Paulson

It is also worth noting that the gold sector has treated Paulson rather well in his career. Back in 2010, he set a hedge fund record by making almost $5 billion in just twelve months.

5 Reasons why Investing in Physical Gold is Always Worthwhile

Regardless of buying digital or physical gold, this precious metal is always worthwhile to investors. It is one of the few markets that offers key advantages one will rarely find in other assets.

Gold Bug Profile: Jim Willie

Even today, Jim is still active in the financial world, primarily as a writer and analyst. He is happy to share his opinions on gold, silver, and a lot of other topics through various publications.

Gold Bug Profile: Bob Kirtley

Kirtley is renowned for maintaining an approach focused on planning and cost control. That expertise eventually translated to his investment strategies as well.

Gold Bug Profile: Ron Paul

Ron Paul has not always been a politician, however. He also serves as a flight surgeon in the US Air Force and performed duties as an obstetrician-gynecologist.

The Many Use Cases for Silver Part I: Electronics, Energy, Soldering, Chemicals, Photography

Unlike gold and most other precious metals, silver has plenty of industrial use cases. More importantly, these use cases are quite varied. It is thanks tot his aspect that demand for silver hasn’t diminished all that much due to COVID-19.

Gold Bug Profile: Peter Schiff

Despite paying very close attention to investment options such as gold and silver, Peter Schiff isn’t optimistic about Bitcoin and other cryptocurrencies.

Gold vs Negative Interest Rates

The world is teetering on the brink of a new economic policy. Not one that was written about by capitalism's founding father Adam Smith, or even John Maynard Keynes, but a giant experiment in which we will all be the subject. Negative interest rates threaten to turn...

Gold Bug Profile: Eric Hommelberg

In the Dutch community, Hommelberg made a name for himself by highlighting several junior gold mines as possible investment options. Those who followed his advance often made a lot of good money in the process

Gold and Silver Bounce Back as Stock Markets Continue to Struggle

Although the markets aren’t out of the woods yet, things are looking better. There is some positive momentum all around, for a change.

Gold Bug Profile: Dr. Martin Murenbeeld

Following his graduation from the University of California, Berkeley as a Ph.D. in International Finance, Martin enjoyed a brief stint at the Faculty of Management Studies at the University of Toronto.

Why 2020 may be the Year of Silver Instead of Gold

Another contributing factor to the sudden popularity of silver is the gold-silver ratio. Despite this correlation hitting a high in favor of gold earlier this year, the current momentum looks very different.

Which Silver Exchange-Traded Products are There?

The most obvious form of silver exchange-traded products are those that are physically backed by actual silver, as they provide the most security.

Silver Bug Profile: Alisdair Macleod

In the modern era, Macleod is best known for educating the masses on how governments handle money and the potential consequences.

The World’s Largest Silver Producer is Closing Domestic Mines for a Full Month

In Mexico, there will be a major change for most silver mines. Multiple locations will have to shut down their operations for at least one full month.

Silver Bug Profile: Ralph Aldis

Ralph Aldis has also been named twice as a US Metals and Mining “TopGun”. This title is “awarded” by Brendan Wood International every single year. He is also the Best Americas Based Fund manager in 2016, awarded by Mining Journal.

Gold Bug Profile: Ronald-Peter Stoeferle

n the video, it is mentioned how Ronald-Peter thinks a gold price of $8,900 per ounce is not impossible. It may – and probably will – take some time to reach this lofty goal

Gold Bug Profile: Ewan Downie

Since leading Premier Gold Mines Limited since 2006, the company has gone through major growth. Its stock is also trading publicly, further validating its approach to gold and silver.

Translate Blog Post

Article Categories

Blog Stats

  • 112,976 hits

Follow the CEO on Twitter

%d bloggers like this: