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.