Gold And Silver Prices – Market Commentary July 24, 2019

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

Gold and Silver prices are up. Silver's carrying strength continues to fascinate the market participants. It's up another 18¢ and $16.52 on the day. Undergoing a minor sell-off following completion of Inner Silver Rally $16.54 was brief. 

Both precious metals continue to challenge the annual summer season doldrums having posted robust price gains in what usually is the most inactive trading month of the year for both metals markets.

The Silver is up to $1.24 this month as of this current session pricing at 7.7%. On the other hand, Gold is up to $43 or a 2.9% increase. A significant unknown hanging over the Gold and Silver market at this point is whether the U.S. is prone to meddle in the foreign exchange (Forex) market attempting to weaken the U.S. Dollar.  

Silver is definitely driving the metals market as we began the week for sure to be ruled by trade concerns, and interest rate announcements, not to ignore the possibility of the further ratcheting of strains of war in the Persian Gulf.

Let's face it Yellow metal is in an unassailable, unruly, rapidly accelerating bull market and the one that will draw Silver base metals supply, to brand-new resurrected highs prices way above the 2016 highs and at least $20 price level. 

Gold and Silver prices dominance

Having Gold and Silver prices going up, Gold is the passing leader who will relinquish its dominance to Silver as the second vital up phase kicks into gear. The Silver should be capable of grabbing the mantle of dominance by the end of the summer season.

The vital key will be its achievement throughout the seasonally weak month of July. Thus far, it has been a well-defined change over the May, June, and July window.

As one can see on the Gold to Silver ratio chart above, Silver has begun to increase on Yellow metal in the ratio. The Gold to Silver ratio shows us how many ounces of Silver currently will take to purchase an ounce of Gold. 

At approximately 90 to 1, is the current ratio, it is the highest ratio in almost thirty years. In 2010 precisely two years after the Lehman Brothers Holdings Inc. collapsed, the ratio declined to 30 to 1. 

The spread separating those two ratio numbers signifies a potential opportunity which doesn't come along all that frequently in the precious metals markets.

See all that glitters around the European Central Bank and Federal Reserve meetings

Financial market players are feeling very jumpy these days. During the run-up till the July European Central Bank meeting tomorrow (July 25) and this month Federal Reserve meeting commencing next week in which both central banks are anticipated to take dovish monetary policy action.

Astute investors and traders have been silently accumulating positions in the precious metals market as Gold and Silver prices are moving relentlessly. Historically precious metals seldom outperform other asset categories unless fear is beginning to grip market players.

You might like these

  • Stock Market Investing Foolishness And Its Downside

    High emphasis points in stock market investing, like high emphasis points in life, are both enlightening and humbling. One minute you think you have captured the world by the tail. The next minute the rug is pulled right out from beneath you

  • Gold and silver investments and why you should protect yourself

    Protect yourself with gold and silver.With the coming collapse of many of the primary markets that run the economies of the world, it's almost a necessity to have your money invested in gold or silver

  • Gold silver as money

    Gold silver is money, of course seldom circulating as such today. Fiat money issued by government authorities have pushed gold away from circulation. Though exactly where does this leave silver?