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Gold and silver prices get slammed – is it over?

Commentaries & Views

(Kitco News) - Gold is down some $30 from the high today and silver at one point gave back almost .45 from the intra-day high. So is the bull market over? I don’t think so. Here are a couple of points to consider: Month end tomorrow, China chimes in, it wants to talk. If  you’re a portfolio manager, it makes your month end look great, let’s take some off the table. Big dealers, let’s wring out the weak longs. That said, I continue to be constructive with my usual caveats. Gold tested and held $1,522, keeps me constructive. Silver hit my target of $18.50, above $17.90 remain constructive.

The bet here is Trump. It’s not China saving face, it’s Trump trying to get a deal done to preserve the equity market, without looking like he caved. If he succeeds, the equity space runs higher and then the Fed maybe steps back on lowering rates, a scenario which would be short term negative for the metals. If Trump blows his chance, the metals, after this correction, will explode. Will mention Brexit and European banks in passing as constructive, but your bet is Trump.

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