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Canadian Discounts On Gold And Silver

This series of articles (previous here) does not aim at predicting where precious metal prices will go, but at showing investors where they can have more metal for their money.

Platinum making a new low last Tuesday is rather a bad omen for the precious metal group. Gold price has broken a long-term support zone and is heading to next one. Horizontal support zones have worked quite well last 3 years, with a narrow tolerance interval. Whatever one think of chart analysis, they are important psychological levels for investors.

Next support zone is around 1100, which corresponds not only to the low of 2010 biggest correction, a short horizontal consolidation in late 2009, and is also a round number. If you look at weekly charts of major stock indices, the importance of round numbers in market psychology has been confirmed in various occasions last few years: at 16k, 17k, 18k for the DJIA, 1400, 1600, 1800, 2000, 2100 for the S&P 500, 3000, 3500, 4000 for the Nasdaq 100, and there is a consolidation zone on most multiples of 100 for the Russell 2000 since 2012. Read more