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Gold/platinum/silver: here is the floor

Commentaries & Views

It was a tough week for the PMG complex if you carried your long positions past the April 18th seasonal exit. For those who followed the Platinum seasonal, you should have booked $1,335/contract. We will continue to use short-term weakness to boost holding in PGMs, focusing on adding long positions in Gold and Silver.

Taking a deep dive into Gold, it is holding up with low volatility despite higher interest rates and a stronger Dollar. At the IMF conference, Fed Chair Powell said: "it's appropriate to move a little more quickly." He added that a 50-basis point hike is on the table, and it is "essential to restore price stability." We believe this aggressive Fed action triggers the risk of a recession, causing investors to dump risk assets and move back into safe havens (Gold, Treasuries, and the U.S. Dollar). To further help you understand the macro environment, we created a free "Gold Trends Macro Book". This monthly updated booklet will provide you with all the quantitative analyses of the precious metal markets. You can request yours here: Free Gold Trends Macro Book.

Daily Silver Chart

Daily Gold Chart

Our Strategy

We believe that Gold prices will remain elevated well into 2022 and accelerate higher as the economic fallout begins while inflationary pressures continue. We expect global supply chains to stay fractured until 2023 with increasing geopolitical risk. We will continue to take a disciplined approach by scaling in incrementally on Gold/Silver/Platinum at critical support levels by utilizing the 10 oz Gold contracts, 1000 oz Silver contracts, and 50 oz Platinum contracts. To learn more about transferring your current investing skills into trading "real assets," such as the 10 oz Gold futures contract. You can request your free guide 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.