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Contributed Commentaries

Gold: Slow price action is not Bad price action

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

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

Commentaries & Views

After touching $1,915 yesterday intraday, gold reversed and stayed in its support range. Until proven otherwise, with a close or breakdown below $1,915 with conviction, the probability continues to favor a move back to $1,950 onto $1,965. Silver bulls will be looking at $25.50 resistance in parallel to the levels in gold. Platinum continues to trade over $1,000 and should form a base between there and $1,035 before making another run at $1,065.

With stocks facing resistance at major moving averages on the daily interval timeframe, this may be the spot where a pullback and minor consolidation occurs before another leg up toward the all-time. US indices have recouped over 50% of the gains given up in the sideways down grind they were stuck in since December 2021; this has been accomplished in less than seven trading days.

The USD index might be at the tail end of a 9-month move, dating back to June 2021. The index is facing resistance at the 100 level. A rollover in the DXY would put a tailwind behind stocks and the metals market alike, not to mention Bitcoin and the other primary cryptocurrencies. This is something to look out for in the medium term.

Thanks and have a great day.

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.