Gold And Silver Prices May Turn Higher As Long-Term Treasury Yields Stagnate

Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Gold-bearish contrarian trading bias.

Silver Weekly Chart – Range Bound With Bullish Bias

(Click on image to enlarge)

Chart prepared by Daniel Moss, created with Tradingview

Silver’s longer-term price action also appears fairly constructive, as prices continue to hold constructively above both the 38.2% and 50% Fibonacci retracements of the surge from the March nadir to the August 2020 high (29.86).

The development of the RSI and MACD is also in favour of bulls, as both oscillators track firmly above their respective neutral midpoints.

A weekly close above the 8-EMA (22.55) probably ignites an impulsive push to challenge range resistance at 28.75 – 29.10. Clearing that brings the psychologically imposing 30 mark into the crosshairs.

On the other hand, slicing through the 34-EMA (24.69) could trigger a more extended pullback to the 38.2% Fibonacci (22.90).

Gold and Silver Prices May Turn Higher as Long-Term Treasury Yields Stagnate

The IG Client Sentiment Report shows 92.11% of traders are net-long with the ratio of traders long to short at 11.68 to 1. The number of traders net-long is 0.99% higher than yesterday and 2.90% higher from last week, while the number of traders net-short is 4.29% higher than yesterday and 7.59% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Silver prices may continue to fall.

Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Silver trading bias.

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