What Do The Charts Now Say About Gold & Silver?

What a difference in the gold and silver prices since yesterday, eh? On the last day of trading in June, both gold and silver hit important technical levels. Gold closed at $1,800, and silver closed at $18.64. And, during early Asian trading, both metals were up nicely.

However, that all changed this morning when the ADP Employment numbers showed a remarkable rebound and along with positive news release of another “hopeful” pandemic vaccine. Thus, the stock markets turned around while the precious metals sold off—basically, business as usual.

And, it should be no surprise when the Fed and central banks are doing everything they can to save the Stock market, which has now replaced the economy. The U.S. and World Markets have become one GRAND CASINO. Nothing makes sense anymore if we look at the fundamentals.  This should scare the hell out of investors into owning precious metals, but unfortunately, they are going to head over the financial cliff along with the Fed and central banks.

I wanted to provide an update on the gold and silver price charts as traders still pay attention to them. While traders are currently controlling the paper price of gold and silver, it will be taken over by forces of physical demand as global currencies and the financial system head into the crapper—Mark my words.

If we look at the following two charts of gold and silver, we can see that both metals closed at the last trading day of the month on critical technical levels.  According to Stockcharts, using the August Futures contract, gold closed at $1,800, RIGHT SMACK on the $1,800 resistance level:

This is a monthly chart of gold, so each candlestick represents one month of trading. The RSI- Relative Strength Indicator shows that gold is now overbought at a 78 reading. So, we may see a correction-consolidation over the next month or two before gold attempts to BREAKTHROUGH that critical $1,800 level on its way to $2,000. Once gold breaks through that $1,800 level, it will likely hit $2,000 relatively quickly.

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