Gold and silver soar as veteran says more to go

July 24, 2020 14:00

Gold and silver soar

The price of gold and silver have soared higher this week due to a perfect storm attracting both short-term and long-term investors. While gold edges closer to its all-time high price level, silver prices have surged more than 20% in just five days.

Did you know you can speculate on the price of gold and silver using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!

The precious metals market has received a boost from its status as a safe-haven flow and other factors. Rising US-China tensions have helped investors pour into the traditional safe-haven of gold, after the US closed a Chinese consulate in Houston, Texas, only for the Chinese to retaliate and close a US consulate in China.

However, the US dollar has also played a part in the rise of both gold and silver. Investors have shunned the dollar due to a variety of factors such as trade wars and a resurgence of Covid-19 infections in some states forcing them to go back into lockdown.

Many analysts also point to some governments aiming for a 'green recovery'. As silver has a wide range of industrial uses, most notably a key component in electric vehicles and solar panels, funds have started to allocate capital towards the metal.

Veteran trader and co-founder and partner of Mobius Capital Partners, Mark Mobius, believes gold could increase further and soar past its all-time high price level of around $1,920 due to trade tensions between the US and China showing no signs of slowing down.

How to trade gold and silver with Admiral Markets UK Ltd

If you are feeling bullish or bearish on gold or silver's price you can speculate on its price direction using CFDs. To get started, follow these five simple steps:

  1. Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
  2. Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
  3. Type in gold or silver at the bottom of the Market Watch search box and then drag the symbol onto the chart.
  4. Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
  5. Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.

Silver weekly trading chart

Source: Admiral Markets MetaTrader 5 Web, SILVER, Weekly - Data range: 9 February 2014 to 24 July 2020. Please note: Past performance is not a reliable indicator of future results.

Did you know that you can open a free demo trading account so you can test your trade ideas and theories regarding gold or silver's price in a virtual trading environment? Open your free account today by clicking on the banner below:

Trade With A FREE Demo Trading Account

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4.The Analysis is prepared by an independent analyst Jitan Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.

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