Silver leads, precious metals rise across the board; gold hits a record high [Ryuuji Sato]

Ryuuji Sato Profile

Sato Ryuuji. Born in 1968. After graduating from a U.S. university in 1993, he joined Genex Co., Ltd. (now Oval Next Co., Ltd.), a information vendor covering finance and investment, after working at a marketing company. He has written analyst reports on macroeconomic analysis, exchange rates, commodities, and stock markets, and has been involved in trading. In 2010, he founded "H-Square Co., Ltd." and has written analyst reports, planned and published works such as "FOREX NOTE Currency Notebook," while also serving as a radio program caster relating to investments. A retail trader. International Federation of Technical Analysts certified technical analyst. Main caster on Radio Nippon Keizai “The Money Ohnosato's Market Forecast” (Mondays 15:00–).

Official site:Ryuuji Sato Blog

*This article is a republication and revision of an article from FX Strategy.com, October 2020 issue. Please note that market information written in the body may differ from the current market conditions.

Silver Rallies from an 11-year Low

In the previous issue I stated that gold was moving higher, but the appetite to buy extended not only to gold but also to silver, then platinum and palladium, turning the precious metals market into a broad-wide rally. Gold hit a new all-time high. And the trigger was silver’s sharp rise.

This time, focusing on silver, which surged dramatically and hit a five-year high among the precious metals, I will look at the precious metal market.

On July 27, gold rose to $1,940, surpassing the high of $1,920 touched in September 2011 and setting a new record. As of July 21, gold was capped around $1,820, so in just five trading days it rose by over $120. The spark that started this surge was silver’s rapid rise.

Looking at silver's price movement since the start of this year, from the beginning to around February it traded in a narrow range of about $17–$18. In March, due to the impact of the novel coronavirus, financial markets fell broadly, and silver also fell to $11.62 on March 18, marking its lowest since January 2009, the 11-year low.