Gold at support, silver mid-range
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After China infused $174 billion on Sunday night, equities popped higher gold and silver were under pressure all day. This morning, equities are exploding higher again; gold is under pressure and silver is slightly higher. Looking at the pattern, gold looks to be a buy, while silver is mid-range.
Not much has really changed in the metals. Gold looks like it wants to test the highs and silver to test the lows. The gold silver ratio is 89-1, looking like its headed back to the 90s before there is a reversal. We are still looking for higher gold, lower silver.
The big picture is simple; the patterns are clear. The trend for gold is higher, and the trend for silver is lower. For now, we buy dips in gold and sell rallies in silver. We would expect gold to test the recent highs in April futures of $1,613. Silver looks to test the lows.