Gold & Silver Surge Off Critical Technical Support

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by Tyler Durden
Monday, Dec 07, 2020 - 10:26 AM

As the dollar roller-coasters once again today, tumbling back down after surging in the pre-European overnight session...

Source: Bloomberg

Precious metals are strongly bid, with gold futs at $1870...

And silver futs back above $24.50...

As both gold and silver bounce off critical technical support levels...

200DMA for gold...

Source: Bloomberg

And 50DMA for silver...

Source: Bloomberg

And, as Bitch Gold Group reports, although gold has pulled back from its all-time high of $2,070 that was seen in August, many top banks and forecasters are calling for much higher prices as we move into 2021.

Citi’s analysts are among those comparing gold’s price action to the start of the 1970-1980 bull market that saw the metal re-establish itself far above its previous levels.

Like Citi’s team, GraniteShares CEO Will Rhind believes that the catalysts for another massive surge in gold are not only numerous, but also ready to rocket the metal higher.

“The stimulus… would be probably the most obvious one, the one that’s certainly driven gold prices for the majority of this year in 2020,” said Rhind.

He added a weakening greenback, rising inflation expectations, a bond market in dire straits and pervasive volatility to the list of reasons why gold should continue its steady move up for at least another 12 to 15 months.