What does long term moving averages say about Silver and Gold price?

Long term moving averages applied in monthly chart

Moving averages are not uncommon but what I have done here on charts of Silver and Gold price is in my opinion unconventional.

  1. I am applying these exponential moving averages on Monthly Charts
  2. Create 12-month, 24-month, 36-month, 48-month and 60-month settings to visualise long term trend

Personally I have not encountered similar charts although I would not say they are unique. My only driver is to try as many concepts of technical analysis to see if there is any that can provide unique insight to what Silver and Gold price is doing.


Are they any use at all?

Moving averages are used to indicate trend as well as support resistance levels. There is not a lot of data in these charts to indicate whether moving averages are doing its first job of indicating trend. Certainly they are lagging indicators. Acting on signals like golden cross or death cross may take too long.

On the other hand, there is plenty of visual evidence that the 12-month moving average (red) and to some extent the 36-month (green) is acting as support. As for other signs, I leave it to readers to draw their own conclusion.

Chart of Silver XAGUSD

Visual evidence that these moving average settings work to some extent – Monthly chart of Silver price

Monthly chart of Gold

Monthly chart of Gold price

If you think they work

Then Silver price is bottom-heavy, can over-correct but both Silver and Gold price remain up trend when you look at long term horizon over three years.


See my most recent posting ‘July 2013 Gold price action: retracing June losses

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