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August 25, 2020 | Gold, Silver Not So Easy to Bully Lately

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

Bullion bulls should be enjoying the show even though silver an gold futures have gone nowhere for the last couple of weeks. Comex Gold has been pounding on a midpoint Hidden Pivot support of intermediate degree almost daily, and although it has traded slightly beneath the support a couple of times, most of the action has been above it. Silver has been even more recalcitrant, defying bears to push it down to a midpoint pivot at 25.66 (shown in chart above). So far this week, the September Comex contract has traded no lower than 26.09.

Although both silver and gold could breach their respective midpoint supports and fall, respectively, to as low as 1837 and 22.75, this appears unlikely at the moment. In fact, bears could keel over from exhaustion if they are not able to breach the midpoint pivots by Friday. If that happens, it would clear the way for a strong rally Sunday night.  Although there is always the chance of a rout such as occurred for a single, ugly day two weeks ago, these episodes are becoming increasingly rare and fleeting. There are obviously enough buyers around to push back hard on days when bears don’t have help from some source, or combination of sources, that stupidly treats bullion like brick dust.

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August 25th, 2020

Posted In: Rick's Picks

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