Gold, Silver, Palladium price analysis roundup

By: Stanko Iliev
Stanko Iliev
Stanko dedicates himself to providing investors with relevant information they can use to make investment decisions. He loves the… read more.
on Dec 31, 2020
  • The price of Gold and Silver remains in a bull market
  • Palladium price could advance even more in January
  • Stock markets have advanced this December, but the world still needs to face COVID-19 challenges

The global stock markets have advanced this December, Wall Street’s three main indexes surged to record highs this week, but the world still needs to face COVID-19 challenges. There is still a long way to fight against the pandemic, but investors hope that a fiscal stimulus and coronavirus vaccines will drive a robust economic recovery in 2021.

US President Donald Trump signed the coronavirus relief and government funding bill this week while the FED announced that it would support the economy for as long as needed using its full range of tools. The positive news is that Britain and the European Union reached a post-Brexit trade deal, but it has still several unsolved issues.

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Despite this, the price of Gold and Silver remains supported by uncertainty over the global economic future. Palladium has seen a significant rise in price since June 2020, and this precious metal differs from Gold or Silver in terms of investment

Gold and Silver’s price usually rises when the economy is in a slump, while Palladium’s chart shows the opposite. Palladium price is expected to continue to be supported over the long-run, but it is also important to say that gold and silver prices remain in a bull market.

Gold price struggling at $1900 resistance

Gold price is advancing this trading week, but it cannot stabilize above $1900 resistance. Financial markets continue welcoming upbeat vaccine news, but the dominant impact of Covid-19 could keep gold prices afloat.

Data source: tradingview.com

Gold price remains in the bull market, and as long the price is above $1800 support, there is no risk of the trend reversal. The current resistance levels are $1950 and $2000; $ 1850 and $1800 represent the critical support levels.

If the price jumps above $1950, it would be a signal to buy Gold, and the next target could be around $2000. On the other side, if the price falls below $1850, it would be a firm “sell” signal, and we have the open way to $1800.

Silver price remains in a bull market

The silver price has advanced from $22.5 above $27 since the beginning of December, and the current price of this precious metal stands around $26.4.

Data source: tradingview.com

The current resistance levels are $28 and $30; $24 and $22 represent the firm support levels. If the price jumps above $28, it would be a signal to trade Silver, and we have the open way to $30.

On the other side, if the price falls below $24, it would be a firm “sell” signal, and we have the open way to $22 support.

Palladium price could advance even more in January

In less than six months, Palladium’s price has advanced from $1900 above $2500, and the current price stands around $2460. It is important to say that this precious metal is different from Gold or Silver in terms of investment and Palladium price could increase even more in January if the global situation stabilizes.

Data source: tradingview.com

Palladium is used in the automobile industry, and the automobile industry has been affected significantly by the pandemic. If the price jumps above $2500, it would be a signal to buy Palladium, and the next target could be around $2600.

On the other side, if the price falls below $2200, it would be a strong “sell” signal, and we have the open way to $2000.

Summary

Palladium price is expected to continue to be supported over the long-run, but it is also important to say that gold and silver prices remain in a bull market. The global stock market has advanced this December, Wall Street’s three main indexes surged to record highs this week, but the world still needs to face COVID-19 challenges.

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