Make Kitco Your Homepage

Contributed Commentaries

Buy the dip: metals or stocks?

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

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.

Platinum was also relegated back under $1065, for now. Palladium traders continue to bear the brunt of the conflict-related volatility, with the metal trading back under $2800 as of this writing.

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,

By Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
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.