With China in the news once again as the U.S. and China trade war has the two countries headed back to the bargaining table, according to President Trump, gold and precious metals are rallying as investors once again seek safe haven assets amid economic and geopolitical uncertainty.
Gold prices have risen once again to peg better than a half decade year high in overnight trading, while the silver market has been experiencing solid gains and hit a two-year high above $17.75. December gold futures were up $2.20 an ounce at 1,539.60. September Comex silver prices were up to $17.64 an ounce.
According to Kitco.com, “September silver futures bulls have the solid overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $16.82. First resistance is seen at the overnight high of $17.755 and then at $18.00. Next support is seen at $17.465 and then at $17.37.”
Precious metal ETFs are also benefiting from the rush to safe haven assets, as the VanEck Vectors Gold Miners ETF (GDX) is up 2.87% in trading Tuesday, while the iShares Silver Trust (SLV) is up 3.15%.
Gold Continues to Thrive
While gold has been thriving, rallying strongly to the upside for three weeks out of the past four recently, silver hasn’t always been as quick to follow suite, typically lagging behind, according to Keith Neumeyer, CEO of First Majestic Silver.
“That’s what you’d expect in the early days of a bull market. As this bull market continues to move along and gets some legs behind it and people actually start believing we’re in a bull market because I actually believe there’s still a lot of doubters out there and silver will pick up the pace and start outperforming gold,” Neumeyer told Kitco News.
For ETF investors looking at investing more brazenly in the precious metals, the Direxion Daily Gold Miners Index Bull 3X Shares (NUGT) is a good place to consider allocating funds for day trading, while silver trading bulls could look into the VelocityShares 3x Long Silver ETN (USLV).
For more gold investing news and strategy, visit our Gold category.