Gold prices halt the 3-session slide; Silver's bull market is just beginning!(With Trading Strategy)

Gold prices steadied on Thursday as investors balanced elevated U.S. jobless claims that undermined a nascent economic recovery with U.S. President Donald Trump's threat to veto a long-awaited stimulus bill. 

At 11:50(GMT+8), the spot gold rose 0.19% to $1875.82 per ounce.

In a video posted to social media on Tuesday evening, Trump demanded lawmakers change the coronavirus aid part of the spending bill to include $2,000 payments to each American, more than triple the $600 per person provided.   

Data on Wednesday showed the number of Americans filing first-time claims for unemployment benefits unexpectedly fell last week, though remained elevated.    

Data also showed consumer spending slipped in November for the first time since the recovery from the coronavirus recession started in May and personal income fell 1.1%.

The EU and UK appear close to striking a post-Brexit trade deal, with Boris Johnson briefing his cabinet on the progress of talks in Brussels.

Negotiators are now thought to be thrashing out the final details.

The official announcement of a deal is expected on Thursday morning.

Silver has been volatile recently, but many analysts are more optimistic about the prospects of silver.

Silver's bull market is just beginning!

11:50(GMT+8), silver rose 0.94% to $25.761 per ounce.

Saxo Bank released its much-coveted annual Outrageous Prediction report. For commodity markets, silver made the list. In a headline-grabbing prediction, the bank sees silver prices pushing to the all-time highs around $50 next year.

Ole Hansen, head of commodity strategy at the Danish bank, said he is bullish on silver for 2021, his forecast in the bank's outlook is an extreme take on a significant trend that will drive silver prices higher.

Not only will silver's monetary side will shine bright in 2021 in an environment where the U.S. dollar is driven lower by rising inflation pressure and low interest rates, but Hansen also said in his report that industrial demand and the green energy revolution will be an essential factor for silver.

"Turbocharging the rise in the silver price in 2021, even relative to gold, is the rapidly rising demand for silver in industrial applications, especially those driving the green transformation such as photovoltaic cells used in solar panel production," he said in his report. "In fact, a real silver supply crunch is in the cards in 2021, and it frustrates the full-throttle political support for solar energy investments under a Biden presidency, the European Green Deal, and China's 2060 carbon-neutral goal, among other initiatives."

"Silver may be a primary metal at the forefront of favorable trends in electrification and quantitative easing, with technicals pointing to a nascent bull market, in our view," said Bloomberg Intelligence senior commodity strategist Mike McGlone. 

New record highs for the silver market would be a breach of the $50 an ounce level. A move like that would double silver's current trading levels. 

Bloomberg Intelligence compares silver's price potential to that of 2008, which saw the start of a rally that took the metal to nearly $50.

"Annual technical indicators for silver are akin to those during turns higher at the start of the new millennium and following 2008. We see the metal following a similar trajectory as the aftermath of the financial crisis toward $50 an ounce, but with greater potential for staying power on a path paved by gold," McGlone said.

This year's breach of the $20 resistance level was very significant for the metal and will help silver move higher next year.

"Our take is bull markets are supposed to get overextended and this one may be just beginning. The market has turned upward following an extended period of subdued prices and may just need some back-and-fill before resuming the rally," McGlone said. "Technicals point to responsive buyers as more likely to prevail on dips than sellers on rallies."

Trading Strategy (source: Trading Central)

Pivot: 1871.00

Our preference: long positions above 1871.00 with targets at 1892.00 & 1899.00 in extension.

Alternative scenario: below 1871.00 look for further downside with 1861.00 & 1850.00 as targets.

Comment: the RSI is above its neutrality area at 50%.

Supports and resistances:

1913.00

1899.00

1892.00

1880.00 Last

1871.00

1861.00

1850.00

Pivot: 25.2600

Our preference: long positions above 25.2600 with targets at 26.0800 & 26.5000 in extension.

Alternative scenario: below 25.2600 look for further downside with 24.9200 & 24.6700 as targets.

Comment: the RSI is mixed to bullish.

Supports and resistances:

26.9000

26.5000

26.0800

25.7432 Last

25.2600

24.9200

24.6700

Guideline for Trading Central strategy 

Trend chart reading guideline

1. First look at the time period in the upper left corner of the chart: ·30MIN and 1H chart shows the trading suggestions for intraday ·Daily chart shows the market trend analysis in next 2-3 days

2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.

3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators: Blue line is RSI, Red line is 9MA;

4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.

How to use TC strategy？

1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell. 

2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.

3. [Alternative scenario] is the plan B for your reference. 

4. [Comment] is the technical analysis of market trends and technical support for trading strategies. 

5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.

Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.