Between 2014 and 2020, Silver ranged between $11 and $21 per ounce. A breakout of the 6-year resistance occurred as a result of the ease of lockdown in the second half of 2020. This breakout led to Silver rallying to $29 per ounce.
Weekly Chart
Since the rally to $29 in July 2020, the bulls have found it difficult to get Silver to exceed that $29 mark. The bears have continued to dominate the charts and price was pulled down to $17 in late August 2022. The last time the price of Silver was $17 was in July 2020.
Daily Chart
Silver’s current support level is $17. A bounce from this support level occurred early in September 2022 and price is now at $21. We might be seeing Silver lose a few points in the coming weeks and the commodity could fall to $19 per ounce.
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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 PriceBrent 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.
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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.
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.
