Gold Records Sixth Consecutive Weekly Lower High as Annual Trendline Turns Negative

Gold closed Friday trading at $4,220 per ounce, up 1.2% or equivalent to 48 points over the week, while silver closed at $61.11, up 0.7%, according to a commentary published by the Kitco website.

However, commentary by analyst Mark Mead Baillie spotted warning signs, as gold recorded a lower high for the sixth consecutive session, while the annual trendline turned negative for the first time since March 2023, prompting caution despite weekly gains.

The market ended trading with a gold-to-silver ratio of 69.1x, with gold down 2.6% year-to-date compared to a 13.9% decline in silver over the same period, according to the commentary.

These readings paint a picture of a metal moving in a continuous corrective path within a new annual framework of lower highs, making U.S. inflation data and the upcoming Fed meeting the two most important factors determining price direction in the coming period. The commentary highlights that technical levels alone are not enough without support from macroeconomic factors.

What do these terms mean?

Lower High: A technical pattern where the highest price in the current cycle is lower than the highest price in the previous cycle, indicating weakening upward momentum.

Gold-to-Silver Ratio: The number of silver ounces required to buy one ounce of gold; a higher ratio means gold is relatively more expensive than silver.

Annual Trendline: A straight line connecting price points over an annual timeframe to show the general trend, with its slope revealing the strength of the path.