What is our trading focus?
XAUUSD - Spot gold
XAGUSD - Spot silver
XAUXAG - Gold-Silver ratio
IGLN:xlon - iShares Physical Gold
ISLN:xlon - iShares Physical Silver
UPDATE from August 12: Spot Gold (XAUUSD) and Spot Silver (XAGUSD) - need to consolidate following the three-week surge turned ugly yesterday when both markets collapsed by much more than would normally be expected during a normal correction. Gold dropped below $1920/oz, the previous high from 2011 while silver collapsed by 18% in just two days. While a small bounce in US real yields, a stabilizing dollar and raised vaccine hopes were the triggers, there is no doubt that a lot of hot money recently had rushed into the markets, especially into silver ETF’s. Having both corrected 50% of the June to August surge we think the sell-off has gone too far and a close today near the highs on both metals could potentially signal the early end of a very deep but needed correction.
Gold was trading quietly around $1800/oz when I started my annual summer holiday in mid-July. Fast forward three weeks and the market has rallied by more than 250 dollars before so far giving a quarter of that back in an overdue correction. Silver meanwhile jumped by 50% to reach a value priced in gold close to the ten-year average.
Gold and silver are two of the best-performing assets this year, putting the much hyped technology heavy Nasdaq in the shade.