Gold & Silver Market Report for Sept 26, 2020
It’s Saturday September 26, 2020 and the Gold and Silver markets close lower this week by -4.88% to $1,866.30 and -14.88% to $23.09 respectively. Both metals have had huge run ups over the past few weeks but have hit price resistance, market volatility and profit taking. We expect prices to move lower in the short term before finding support and rebuilding their upward trend.
After several weeks trading around the $2,000 per ounce level, a new resistance line has formed at $1,960 for gold. Gold’s impressive run up couldn’t maintain it’s price action above this resistance line and it will move lower to the $1,800 level where it should start consolidating. There is a small chance that Gold could go lower and find support at the $1,520 level. Next week’s market action will provide us clues as to the direction of this market.
Silver prices are expected to remain very volatile next week with possibly finding weak support at the $23 price level. Silver could make a break lower to $17.00 if the silver stackers start flooding the market with their rounds. This is a healthy correction to flush out the weak hands in the market.
Our long term outlook for Gold and Silver metals remains higher with Gold in a strong up trend and silver in a moderate to strong up trend. Silver appears to want to consolidate at these price levels. We expect a large period of volatility in the next few months as US election cycle peaks in early November. Our long term price targets for gold remains $2,500 and $40 for silver.