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Gold/silver: continue buying the dip

Commentaries & Views

It was not the finish of the week I was expecting, with +467,000 jobs created in January and December revised up 510,000. Interestingly, Gold and Silver shrugged off early losses and power back into the green by the end of the session. Realistically, Gold should have been back down around $1785 and Silver at $22 (our buy zone). "Play the game you are in, not the game you want" is what they say. With that said, it appears that the Fed is dead set on raising rates in March and will continue to tighten into an economic slowdown. The market knows this, and that is why you should continue to see investors lighten up on U.S. Equities and continue to transition into other "safe-haven" assets such as Gold.

Daily Gold Chart

In the future, we will be watching signs if Fed policy makers begin to question the pace of the rate hikes. We should see an underlying bid on the Gold market form if that starts to happen. Looking at next week's setup, the most likely range in Gold sits at $1775 on the downside with $1860 on the upside. I went back through 20 years of my trading strategies to create a Free New "5-Step Technical Analysis Guide to Gold but can easily apply to Silver." The guide will provide you with all the Technical analysis steps to create an actionable plan used as a foundation for entering and exiting the market. You can request yours here: 5-Step Technical Analysis Guide to Gold.

Daily Corn Chart

Who says food inflation isn't here to stay? One of the markets we have been tracking, and actively risk managing is the Corn market. We believe that dryness down South America will continue to impact production yields. China has already been an aggressive buyer, which has caused excess supplies to dwindle. This week they had canceled orders due to their holiday, and we expect them to come back strong in the following weeks. Remember, the most popular trade in 2022 by active fund managers has been to buy strategic commodities while selling equities. To learn more, we completed a new educational guide that answers all your questions on how to transfer your current investing skills into trading "real assets," such as the 10 oz Gold futures contract. You can request yours here: Trade Metals, Transition your Experience Book.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.