Gold eyes a break of $2,000, silver closes in on $27

Gold nuggets
Matt Simpson financial analyst
By :  ,  Market Analyst

Whilst correlations ebb, the relationship between silver and gold are usually quite strong, and these two markets have risen in tandem during their recent breakouts. They also printed 1-day reversal patterns around important levels which hints at the potential for a pause in trend or pullback (assuming they don’t simply break higher anyway).

20220419goldCOTfx

But considering the hawkish Fed and strong US dollar, it is a testament to their strength that gold and silver managed to rally as well as they have. Large speculators remain net-long overall, and money managers increased their net-long exposure to both gold and silver futures last week. We therefore remain bullish overall on both markets and will view any potential pullback as an opportunity for dip buyers.

 

View previous analysis: Silver breaks above $25 - correction complete?

 

 

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