Precious metals prices are running away with it this week. Canny traders have been maintaining long positions in gold and silver for some time now and are being rewarded by precious metals prices that have been driven in no small part by the Trump administration.
Gold pushed over $3,000 per ounce in this morning’s European session, marking a significant milestone in the rally which began in December 2015. It first broke above $2,000 in August 2020. But it subsequently pulled back, and only made a decisive break above $2,000 in February last year. Since then it hasn’t looked back, as predicted as part of our 2025 forecasts for Armchair Trader Plus subscribers.
But the big question is: what now? At the time of writing, gold had dropped back below $3,000, indicating that traders are treating this level as an area to take profits and/or go short, rather than as a marker for buy-stops and taking on fresh long positions. But it seem likely that most short-sellers will have their stops placed a bit above the big figure.
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Armchair Trader up 52%+ on gold position
Here at The Armchair Trader we have been gold bulls for quite some time now. We are up over 52% unleveraged in our gold position, which we added in November 2021, partly in anticipation of Russia scaling up action in Ukraine. The case for gold has continued to grow since then, as has the price.
“It takes time for traders to get comfortable trading in uncharted territory,” said David Morrison, an analyst with Trade Nation. “It will be very interesting to see how gold behaves going into the weekend. It’s worth noting that it is far from being overbought at current levels. Silver is also making positive progress, and $34 remains a key level for it to break above and then hold.”
Silver market is off to the races in March
Let’s also talk about silver. The precious metal has disappointed traders so many times. I’ve always hoped for the significant rally in silver, as we saw in the wake of the big surge in gold prices in 2009-10, when the global financial system was tottering after the Lehman Brothers collapse. Silver has flirted several times with the precious metals market but it has always been gold that has been the belle of the ball in the last couple of years.
Those who attended the silver panel I chaired at Resourcing Tomorrow in London in December would have heard the very compelling case for silver that was made by the experts on that panel. Since the end of last year, silver has bounded up from around $29 to hit $34 at time of writing. It was trading at $24 a year ago.
We had a big correction down in silver off a level of close to $35 in October, but it looks like prices will get back there soon. With gold now at the $3000 level and industrial consumption of silver picking up, there could be a more robust bull scenario evolving here. Much is going to hinge on what happens in the White House with US tariffs and indeed with Ukraine peace talks in the next few weeks.
Related Gold and Silver ETFs
Core Physical Gold Gold
LON:WGLD / USD 
Gold 1x Daily Short Gold
SBUL / USD 
Gold 2x Daily Leveraged Gold
LBUL / USD Gold 3x Daily Leveraged Gold
3GOL / USD Gold 3x Daily Short Gold
3GOS / USD Physical Gold – GBP Daily Hedged Gold
GBSP / GBP Physical Silver Silver
LON:PHAG / USD Silver 3x Daily Leveraged Silver
LON:3SIL / USD Silver 3x Daily Short Silver
LON:3SIS / USD
