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Gold Saw Its Biggest One Day Rise Since March, And Silver Prices Rallied Too

Derek Wolfe

Updated: August 1, 2022

gold silver high
Editor’s Note:

EDITOR'S NOTE: We’ve been saying that gold’s $1,680 support level remains a critical floor for those holding and purchasing the yellow metal. We also saw Chinese retail demand soar as gold’s price approached this range. Silver didn’t have a clear historical support level, but we saw it bounce back aggressively as soon as it retraced 61.8% from its 2021 highs (a critical support level and buy signal for technicians who keep an eye on Fibonacci retracements). The outcome: from its July lows, silver prices have jumped 10.67% while gold in the same period advanced by 4%. These lows, far from signaling a bearish outlook, signaled strong buying opportunities for those who saw the state of global supply and demand from a clear and objective perspective. Don’t place too much weight on sensationalistic headlines such as the one below commenting on “gold’s one day rise.” It’s all about the big picture. It’s hard to do when the value of an asset is falling. But this clarity in vision is often what separates the smart money contrarian from the average investor.

Gold futures climbed Thursday, marking their largest one-day percentage gain since March, while silver prices rallied by nearly 7% -- the biggest daily rise in more than a year, according to Dow Jones Market Data. The U.S. GDP data has "re-affirmed my view that the [Federal Reserve] will have to slow down the pace of the hikes and potentially go in reverse in early 2023," said Fawad Razaqzada, market analyst at City Index and FOREX.com. "Against this backdrop, gold should be able to find buyers on the dips, given how much it has fallen already this year." August gold GCQ22, +0.11% rose $31.20, or 1.8%, to settle at $1,750.30 an ounce. September silver SIU22, +0.36% ended at $19.868 an ounce, up 6.8%, or $1.27. The percentage climb for silver, which has significantly underperformed gold so far this year, was the biggest one-day rise since Feb. 2, 2021.

Originally published on Market Watch.

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