Prices and Charts
Gold in NZ Dollars Above $2000 for the First Time since 2013
NZD gold is up sharply this week. It has broken clearly through the psychologically important $2000 level. A level not reached since early 2013 – nearly 6.5 years ago.
So it’s now worth looking at where to from here for NZD gold?
We’ve added a few trend lines along with some overhead horizontal resistance lines. These highlight some possible levels to now watch for.
The rising blue trendline indicates $2050 may be where we see a short term pullback. As this will be the top of the trendline dating back to late 2016.
Once gold betters that mark there is no real resistance until $2200. This is where the next major overhead resistance is (red line). Also intersecting with the next rising trend line (blue).
In US Dollar terms (lower half of the chart below), gold also looks close to making a breakout now that it is back above $1300.
Silver Also Up – But Not as Much as Gold
NZD silver was also up over 2% this week. But still lagging gold. Silver is still in the giant wedge formation. Shorter term silver is also continuing in the sideways consolidation range it’s been in since March.
As a result of the jump in gold, the gold to silver ratio hit 90 for the first time since the early 90’s.
This was also when the ratio reached it’s all time high of just over 100.
So there is a chance yet of a repeat of that. However silver remains the best buy currently compared to gold. If we did see a return to a ratio of 100, the odds are it would be very brief. Just like 1991.
The current price of silver is likely to be looked back at as being incredibly cheap. Grab some today if you haven’t already.
For more on the Gold Silver Ratio see: What is the Gold Silver Ratio? Why is the Gold Silver Ratio at New Highs?
NZ Dollar Bouncing Back
The NZ Dollar finally bounced higher from its very oversold position of recent weeks. But even a higher Kiwi didn’t stop the rise of NZD gold.
For now it seems that maybe the forex markets have priced in the lower interest rate regime here in New Zealand. So we may see the Kiwi consolidate for a bit now.
Although it might find it tough to get above the 50 day moving average.
Need Help Understanding the Charts?
Check out this post if any of the terms we use when discussing the gold, silver and NZ Dollar charts are unknown to you:
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Could Negative Interest Rates Be in Store for New Zealand?
Speaking of interest rates. The recent cut and some crazy news we read last week about negative interest rate mortgages got us thinking: Could New Zealand get negative interest rates?
We look at why people are prepared to pay governments to borrow from them. What negative rates might be saying and whether it is really so whacky to think they could come to New Zealand?
Your Questions Wanted
Remember, if you’ve got a specific question, be sure to send it in to be in the running for a 1oz silver coin.
Buying the Gold Breakout?
We usually talk about buying gold and silver on pullbacks as the best move.
However the chart for NZD gold we showed earlier points to likely higher prices ahead.
When a clear breakout such as this occurs, it is one of the times when may pay to go with the momentum. As any pullback may now only be back to what was the previous resistance level around $1970.
Does this talk of support and resistance have you confused?
We’ve updated our ultimate guide to gold and silver technical analysis. We’ve added Fibonacci retracement levels to the guide.
Plus in light of the current NZD gold breakout, we’ve added a number of current gold charts. These give some real life examples to determine buying zones and price targets now.
With silver still lagging gold, we reckon silver is still the best buy today.
Get in touch to discuss your different options. Or let us know any questions you have:
- Email: email@example.com
- Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
- or Shop Online with indicative pricing
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