Make Kitco Your Homepage

USD strength keeps keeping the pressure on

Commentaries & Views

We had suggested $1,785 gold as support should the bulls lose $1,800; that occurred as gold bounced hard off $1,785 on Friday. Silver bore the brunt of last week’s selling, having lost support at its 200-week moving average. Silver investor sentiment has become downright bleak, and experienced metals traders may take this as a contrarian indicator and a sign a bottom could be close

Caution: the current setup in silver is also conducive to a waterfall-type selloff that may see it trade down aggressively this week, to the $18.50 level before a bottom is found. $18.50 is the price at which silver broke out in the summer of 2020 and coincides roughly with the 61.8% Fibonacci retracement.

With the USD continuing its ascent to new yearly highs today, the case can be made that gold is holding up very well and continues to churn sideways to set the stage for another leg up once dollar strength subsides in earnest.

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.