Buy the dip: metals or stocks?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday we had suggested that intraday resistance in gold was around $2013, and the metal topped out at $2,010 spot before reversing lower. Gold has minor support at $1960 -1965$, with major support likely between $1915 - $1925 going forward.
Silver, however, continues to hold up well in relative terms, with the GSR (gold/silver) ratio reversing lower as the metals sold off. The bull case for metals remains intact; long-term holders may want to wait for signs of a bottom before buying the dip, however.
Stock futures are pointing to a higher open this morning. Contrarian stock bulls who have been buying into the recent fear-driven selloff in the equity space stand to be rewarded, at least in the short term, should the path toward peace continue to develop. This may turn out to be a time when the old adage of "buy fear/sell greed" plays out accordingly.
Traders should continue to be on the lookout for outsized volatility heading into today's close, as market participants position themselves for the known unknown that is headline news out of Eastern Europe.
Thanks and have a great weekend,