Markets crushed; why are gold, silver under pressure?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The equity markets have been under unrelenting pressure and there are no signs of that stopping. Volatility is spiking and should pass the highest level since December 2018. With the markets getting crushed, why are gold and silver under pressure at the same time?
After peaking on Monday, with silver making six-month highs and gold making multi-year highs, the metals have been under pressure. There are many reasons for action like this. More than likely, the metals were ahead of equities, pricing in the equity sell-off before it happened. This action is typical in a buy-the-rumor, sell-the-fact type of trading.
Gold, silver and platinum are all reaching support levels and should bounce. The metals should be headed back to the recent highs; the sell-off was expected. Until the pattern changes, the metals should be bought at support levels as we look for the highs to be tested. The action will be wild and crazy, so don’t get confused with correlations; watch the patterns. We are long the metals across the board for now.By Todd 'Bubba' Horwitz
Contributing to kitco.comFollow @Bubba_Trading