Sept. 1 (Bloomberg) -- Silver is poised to form a so-called “golden cross” which may push the metal to a record $50 an ounce by October, according to technical analysis by brokerage GoldCore Ltd.
The attached chart shows silver’s 50-day moving average may be heading above the 100-day moving average. The golden cross, which occurs when a short-term trend line rises above a longer- term one, is viewed by some chart analysts as a bullish signal.
“The 50-day moving average is rising after the recent price gain and is looking like it will cross the 100-day moving average in the coming days, which will be a bullish technical signal,” said Mark O’Byrne, executive director of GoldCore in Dublin. “We should see silver surpass the record nominal high in the coming weeks or months.”
Silver for immediate delivery touched a record $49.79 on April 25 and traded at $41.561 by 5:49 a.m. in London today, taking its gain this year to 34 percent. It’s the best- performing main precious metal this year, beating global equities, commodities and Treasuries.
Prices rallied about 55 percent between Sept. 10 and the end of last year when the 50-day moving average climbed above the 100-day moving average. A gain of that much would push the metal to about $64, which is possible by the end of this year, O’Byrne said.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.
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