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Metals post-Powell

Commentaries & Views

Gold reversed back down under the $1,845 level as chairman Powell delivered his testimony, where he reiterated the Fed’s commitment to battling inflation (of course, not without the usual qualifiers). The 200-day moving average in gold proves its resistance yet again. Bears, however, despite the committed Fed, have failed to get gold below $1,800.

Taking a zoomed-out view on silver:

  • It is approaching support at its 200-week moving average.
  • It is supported at the 50% Fibonacci retracement level going back to the March 2020 bottom.
  • The weekly stochastics are oversold and will cycle back to overbought.

The better metals bulls can defend major long-term support in the face of this interest rate hike cycle, the better the prospects become for a major move higher on a change in monetary policy.

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.