Gold, silver on support
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After yesterday’s ugly sell-off in the metals, both gold and silver are sitting on support. This morning, both are slightly lower. The big difference between the two is gold is still in an uptrend while silver is in a downtrend.
We would expect a bounce in both followed by a continued rally in gold and a failure in silver. The patterns are clear and for now the spread between gold and silver should widen. We expect gold to test the recent highs and silver to test the $17 level based on March futures.
Now that it appears there is a solution for the coronavirus, the fear trades are over, and we should see the longer-term patterns trade. Gold looks to continue the rally and silver the sell-off. For now, there is no expectation for the recent patterns to change.