Gold & Silver Remain Under Pressure
Precious metals, gold and silver continue to remain under pressure while equity markets persist in their push to make new all-time highs. Despite several attempts to rally throughout the day, each push to the upside was immediately met with an influx of sellers looking to exit the market and take profits. As has been the case for much of the past decade, downward market pressures continue to restrain these two most popular of commodities from trading at what many believe would reflect a truer valuation.J.P. Morgan Woes Continue as U.S. Prosecutors Hint at Criminal Charges
Thereto, headlines screeching across financial news outlets from late last year through to just this past week, highlighting charges being brought against six precious metals traders from J.P. Morgan for silver manipulation with federal prosecutors now looking to charge the entire company with market manipulation, and in conjunction with the bank’s decade-long stockpiling of physical gold & silver do nothing to diminish the suppression sentiment expressed by precious metals traders & investors.
As such, we find gold and silver are now approaching a moment of truth as both reach their respective support levels. Present market conditions show a pattern of gold bouncing slightly higher whilst the pattern in silver trends towards falling lower. Therefore, if looking at a silver play remain on the lookout for the dead cat bounce, with gold then continuing to push higher slowly for the foreseeable future.
This particular bouncing trend is now common across all markets, as silver plays the role of contrarian slinking lower. Analysts are expecting silver to trade down to a level of $17.00 per ounce. In addition, gold is likely to test the $1,560 level before resuming its rally higher, with the next support level test forecast to be $1,600 per troy ounce. Specifically, traders are prognosticating gold will test its prior high set on January 8, 2020, whilst silver tests its lows, via the $17.00 support level.
