Gold vs. Silver: Which Is the Best Trade This Week?

Key Points:

• Gold shows strength above key moving averages, potentially bullish.
• Silver breaks above multi-year highs, but momentum may be challenged.
• Speeches from seven Fed officials and the #SilverSqueeze movement are influential factors.

This week presents a crucial decision for traders between gold and silver. Gold has displayed strength by ending the week above key moving averages, suggesting a bullish outlook. Conversely, silver has made a significant break above multi-year highs, but sustaining this momentum may prove difficult as it approaches overbought territory.

Gold Technical Analysis

Gold (XAU/USD) prices rose at the end of the week, trading well above the 20 Simple Moving Average (SMA), with the 100 and 200 SMAs also indicating a bullish trend. Despite this upward movement, gold did not quite test the all-time high around $2,431. Renewed buying pressure beyond $2,413 could drive prices past the $2,420 mark. The performance of gold this week could be heavily influenced by speeches from seven Federal Reserve officials, offering potential catalysts for price movements.

Silver Technical Analysis

Silver (XAG/USD) is nearing its multi-year high at $31.40, with Friday’s sharp rise confirming a break above the multi-year trendline. The challenge for silver will be to maintain this bullish momentum despite entering overbought territory, as indicated by the 14-period Relative Strength Index (RSI) hovering around 70.00. The next resistance level for silver is at $31.50, last seen in May 2011. However, if the current momentum wanes, support could fall back to pre-surge levels. The #SilverSqueeze movement, linked to the recent meme stock frenzy, might also impact silver’s performance this week.

For traders, the choice between gold and silver this week hinges on monitoring key technical levels and external influences such as Fed speeches and the #SilverSqueeze movement. Import the BlackBull Markets Economic Calendar to iCloud, Google, or Outlook to receive timely alerts and strategically plan your trades.