Gold/Silver: Another perfect setup is forming
Divergence has been the name of the game this week, with the Gold/Silver ratio pressing back to 2024 highs at 92:1. Something I noticed from the last time we were trading at this level on January 22 was a large buyer emerged in the SLV ETF increasing the number of shares by 17,700,000 to a total number of shares outstanding at 490,100,000. Coincidently, within 24 hours, China announced a new round of stimulus, pushing Silver up 8% over five trading days. Was this luck? I suspect that it is not and will repeat.
Silver: now is the time to act
The backdrop of this article is a letter I sent out to a potential investor regarding Silver. After a volatile start of 2024 and the first two-week shenanigans behind us, one contract that has recently grabbed our attention as a long-term value play is the March Silver contract. We anticipate that Silver prices are trading near a critical support trendline (see chart), and the downside remains limited.
Gold/Silver: It all comes down to the Flip of a Coin
Precious metals are off to a rocky start in 2024 as the number of interest rate cuts by the Federal Reserve are called into question. The Dollar Index has shown significant resiliency, bouncing off the 100 handle to the best start in nearly two decades. Eurozone inflation has unexpectedly rebounded in December to 2.9% from 2.4%, trimming the chances of a March ECB rate cut from 70% on Thursday to 40% on Friday. The U.S. Payroll report showed an unexpected increase of 216k jobs created versus the consensus of 170k, leaving us with a 50/50 chance of a rate cut in March.
Gold/Silver: Check out this gold seasonal strategy
(Kitco commentary) - It was another challenging week for Precious Metals, with Gold futures trading back near one-month lows. At the same time, it is hard to believe that with a downtick in headline inflation data and an uptick in initial claims, Gold cannot sustain a rally.
Gold/Silver: Is the bottom in?
(Kitco commentary) - Precious Metals came under pressure this week, led by better than expected employment data and a lack of follow through on a U.S. credit rating downgrade. If you remember, in 2011, the economy was still struggling to find its footing after the fallout from the financial crisis.
Gold/Silver: The secret to successful trading
(Kitco commentary) - It was a choppy week for precious metals fueled by a series of market-moving headlines. Coming into the week, I made it clear from the title of last week's article, "Get your five-point racing harness ready," that we would see fireworks.
Gold/Silver: Get your five-point racing harness ready
(Kitco commentary) - It was a tough week for Precious Metals after softening U.K. CPI data on Wednesday marked a near-term top in the Euro and Pound. The ripple effect drove the U.S. Dollar up five out of the past six days as calls for its imminent demise will have to be on hold for another time.
Gold/Silver: New breakout levels in Gold and Silver with your buy level in Platinum
(Kitco commentary) - Precious Metals had a volatile week led by a fury of economic data that the Federal Reserve is closely monitoring. The upward surprise in the ADP figure on Thursday was enough to take Platinum, Palladium, and down 1.5-2%, pushing Platinum below the psychological $900 mark.
Gold/Silver: It's time in the market, not timing the market
(Kitco commentary) - Precious Metals started the week on a stronger note, led by ECB President Lagarde, who expressed a firm stance on fighting inflation and will continue with a series of additional interest rate hikes. Her hawkish tone lifted the Euro Currency and pressured the U.S. Dollar.
Gold/Silver: Three levels I'm watching to signal a bottom
(Kitco commentary) - Precious Metals corrected sharply this week, with the Bank of England unexpectedly raising interest rates 50 bps, leaving investors uneasy about the Fed's next move. With the July FOMC meeting 33 days away, the CME FedWatch tool pegs the probability of a rate hike at 77%.
Gold/Silver: Can this silver rally hold?
(Kitco commentary) - It was a constructive week for commodities as all sectors we track and trade at Blue Line Futures ticked higher. Precious Metals were slow to start as the U.S. Dollar and Two-year Treasury yields put up a strong defense keeping Gold relatively contained.