Market News & Analysis

Top Story

Gold Trading Higher, but Don't Forget Silver

With the addition of more Chinese technologies companies to the blacklist yesterday evening, Gold is trading higher today, currently up .60%.  But don’t forget about silver, which has been trading higher as well since June, currently up almost 1.5%.  However, the white metal has a lot of work to do if it is going to continue to move higher, as there is a great deal of resistance it needs to get through first.

Silver had been in an upward sloping channel since the beginning of June and peaked in early September.  Since September 4th, Silver has been pulling back in a channel formation and has bounced off the 50% Fibonacci retracement level from the May 27th low to the September 4th high.  Although there is still time left in the day, if Silver were to close 17.51, price would put in a bullish engulfing candlestick on a daily timeframe, which is a 2-candlestick bullish pattern.

Source:  Tradingview, City Index

On a 240-minute timeframe, Silver is running into the 38.2% retracement from the September 4th high to the October 1st low at 17.79, which also acts as horizontal resistance.  Above there, Silver needs to convincing break through the downward sloping trending near 18.03.  In addition, just higher is the 50% Fibonacci retracement level from the previously mentioned time period, at 18.27.  That level too acts as horizontal resistance from the spike low on September 24th.  Support comes in at the previous lows of 16.90.  The next level of support is the spike lows and horizonal support near 16.50.

Source:  Tradingview, City Index

Although silver looks like it wants to move higher, it seems like it may struggle until it pushes through strong resistance above.


Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.