FaithMight

Tag: $Gold

  • UNCHARTED Podcast: Episode 4

    CRYPTOCURRENCY: An overview of the Crypto market
    CRYPTOCURRENCY: Analysis of Bitcoin & Ethereum

    In this podcast episode, we did a general review of markets. First, we extensively discussed Cryptocurrencies. We looked into Bitcoin and Ethereum and the recent stagnation. We also did a forecast of the direction that these major Cryptos may move in the coming months. We touched on Solana and the impact Bitcoin has on all cryptocurrencies. Here’s a forecast on Bitcoin we made some months back.

    CURRENCIES: The Impressive Run of the US Dollar and how Risk-Aversion is contributing to it
    CURRENCIES: Depreciation of world currencies and their reliance on the USD
    CURRENCIES: US Dollar as a Safe Haven, GBPUSD, & NZDUSD
    CURRENCIES: Possible causes for USD rise and Inflation
    CURRENCIES: US Economic Strength and quarter-over-quarter GDP growth
    CURRENCIES: Recession Fears & USDJPY

    We also took a dive into the world of Currencies, specifically the United States Dollar. The Dollar has been dominating the world of currencies. Despite inflation rates being sky high, the Dollar seems to be doing relatively well when compared with other major currencies. We also discussed the Central Banks and their reactions to the inflation their respective countries face.

    COMMODITIES: An overview of Gold & Silver
    COMMODITIES: USD vs Gold, which is the Safe Haven of Choice?

    We closed this episode on Commodities. During times of crisis, it is expected that people will hedge their funds in Precious Metals but this isn’t what we are seeing. Investors are hedging their funds in USD and investors from emerging markets also see USD as a safe haven as opposed to Gold and Silver.

    Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks in your portfolio? Schedule a meeting with us here.

  • Commodities Skyrocket Amidst Russia-Ukraine Tensions

    Since the beginning of the Russian military invasion of Ukraine, prices of most commodities have headed in a strong bullish direction. On Monday, 7th of March 2022, the price of Gold hit $2002 per ounce in a gap up. The last time it reached this price was in August 2020. The year’s support line is at $1780 per ounce.

    Weekly Gold Chart

    The price of silver reached a new resistance level at $26.1 per ounce. The last time Silver’s price was at this level was in July 2021. The year’s support level is maintained at $21.9 per ounce.

    Weekly Silver Chart

    The price of Brent Crude Oil opened for the week at $129 per barrel. It appreciated for some hours to $130.55 after which it began to drop. As of March 7, 2022, the price of Brent Crude Oil is at $122 per barrel. WTI Oil opened at $121 per barrel and rallied up to $130.55 before it began a descent. WTI Oil’s price is currently at $119.

    WTI Oil Price
    Brent Crude Oil

    We don’t see the commodity price sustaining this rally over the long-term as the Russian military forces might cease-fire in a few weeks following strong sanctions from the international community of nations. The conflict may also be suspended soon if Putin and Zelensky can come to an agreement.

    Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks and commodities in your portfolio? Schedule a meeting with us here.

  • Uncertainty In Gold Price Movement Amid Russia-Ukraine Tensions

    Ever since the all-time high for Gold was reached in August 2020 at $2074 per ounce, the bears have been more active in $XAUUSD’s price action. Before the all-time high in 2020, there was high volatility in the price of gold. For example, the lowest price of $XAUUSD in August 2018, August 2019, and August 2020 were $1,160, $1,400, and $1,865 respectively.

    Daily Chart

    Since the all-time high in 2020, the price has maintained a support level at $1,677 even till now. The current resistance level is at $1,917 which has been active since 2021. As at August 2020 when the price of $XAUUSD reached an all-time high, RSI indicated that the price was overbought which possibly was the cause of the price dip at that time.

    Weekly Chart

    Since the beginning of 2022, Gold has rallied. This week, Gold hit $1,912, the highest point since the year 2022 began. It isn’t certain that Gold can keep up this rally for much longer as the rally is linked to investors’ panicky response to hedge their investments in precious metals, which are commonly considered to be safe havens during geopolitical crises.

    Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks and commodities in your portfolio? Schedule a meeting with us here.

  • Gold And Silver Prices Are Increasing

    Exactly a month ago, an article was written to show the likely possibilities of an increase in the prices of Gold or Silver. Since August 2020, Gold’s price has been on a downward slope from the all-time high of $2076.74. Despite normalcy is almost returned to the world at large with the mass vaccination introduced, prices of Gold and Silver have had lower highs and lower lows in the last year.

    For silver, the price reached a new high this year $30.06 per ounce. The last time one ounce of silver cost $30.06 was in December 2012. The demand for metals has increased in the last few years, as more luxury items, gadgets, and equipment are produced globally. Everyone who must have bought gold or silver on the 14th of August 2021 when we wrote the article, must have gained a reasonable amount in their investments.

    Both Gold and silver charts have formed an inverse head and shoulders pattern. This could be a strong indication of a bullish run for both metals. The next bullish run could push the price of Gold to $1837 per ounce and that of Silver to $24.809. In September, both Gold and Silver prices had a bull run but could not break the resistance level at $1837 and $24.809 respectively. 

  • You Might Now Have Gold Or Silver

    Most gains in the commodity market in 2021 have been lost. With an emphasis on Gold and Silver, Silver’s price at the beginning of the year at $26.605 per ounce. Price rallied to $30 on the 1st of February, after which a major dip began. Today’s current price of silver at $23.685 was last reached during the lockdown in April 2020. The long time frame shows that price of $XAGUSD might dip in the coming months or years, as RSI shows that price has been overbought.

    Could it be that the pandemic might pose a further threat to the commodity market? The last time the commodity market was badly affected was in 2011 after it reached a peak at $50. In 2018, the US Department of Justice (DoJ) had arrested a former long-time precious metal derivative trader from JP Morgan Chase for precious metal fraud. This year’s fall in price might be a result of increasing cases of Covid-19 across the world.  

    We might see a rally in the price of Silver in the coming weeks as there was a bounce on the support level at $22.246. All Silver gains in 2021 have been lost with -10.9%. Price is currently at the lower region of the Bollinger bands, but we have an indication on the RSI that the price is oversold. In the last 5 trading days, the price has been consolidating, which could lead to the next bull run to $27.902.

    $XAUUSD’s price at the first trading in 2021 was $1902. Buyers made price reach at yearly high at $1959., which was about 3% gain. Gold has lost all the gains this and at a loss of 5x from the initial monthly gain. In April, we wrote of the continuous fall in the price of Gold. . There was an uprise to $1918 from $1778 after the analysis. Nevertheless, after the rally, the price fell to $1740 this month, where the article’s next support level was pointed to.

    Many manufacturing countries might have reduced production, which could have been as a result of low patronage caused by Covid-19, hence the reason for the drop in price. Price was initially showing overbought in May, but in June and August, the price of Gold showed the price is oversold. The current price of Gold is at $1779.24, as last week’s trading closed high. This indication could push the price to $1895, renewing hope for the gold investors.  

  • Gold Price Might Plunge Further

    Gold price has been on a bullish run since 2018 with the lowest level at 1165 per ounce. Price reached the all time high of 2073.63 in August 2020. The year 2021 has not been a good year for gold Investors as price plunges. Each time price of $XAUUSD tries to rally since August 2020, it dips further. After $XAUUSD price maintained a bearish turn in the first-two weeks of April, price broke a resistance level at 1746 per ounce, the rally was extended to 1789. Despite a bearish turn since the beginning of this year, April is the first month with a reasonable gain in gold price with over 26.8% gain of the year losses.

    Could it be that investors are worried despite the ease in the lockdown across the world? The trend since August 2020 shows that there have been lower highs and lower lows as a result of the plunge. Price of $XAUUSD could fall further. A reversal from the rally could make price plunge to the support level at 1740.536. There have  been a double top indicating a likelihood of a continuous dip. RSI shows price is currently overbought.