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Optimism Returns: Hurts Gold But Helps Silver

(Kitco News) - Gold has a slightly weaker bias, as equity markets continue to rally, as rhetoric on tariffs and currency manipulation has softened. Trump’s meeting with Abe from Japan appeared cordial and no aggressive comments were released on the possible currency manipulation by Japan, weakening its currency to stimulate exports. Trump meets with Trudeau today to discuss policy, as the market awaits any news on the future of America’s position with Canada, its largest trading partner. The industrial metals have gained further momentum, as the expected U.S. reflation trade should bolster demand. Traders are expecting silver to test the 65:1 ratio, at a minimum, which at current gold prices, suggests that silver is at least $1 below fair value. Gold support remains at the $1,220 level. Should silver break above the $18.25 level, it suggests a  $19 print may be the near term target.

By Peter Hug, Kitco Metals Global Trading Director; phug@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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