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Strong jobs report, strong economy?

Commentaries & Views

The downside scenario is playing out in the monetary metals. Gold lost support at its rising trendline. However, gold should find major support somewhere in the highlighted area, as sentiment in the sector continues its slide into outright depression. This may be the spot that long-term investors pick to add to existing holdings, especially in the physical form.

It’s no surprise that silver also continues its descent, having breached below $19 this week. As suggested on Monday morning, the downside target for silver remains in the $18.50 - 75 range. Of course, an overshoot to the downside on capitulative selling in the metals sector is extremely common; bottom pickers should expect to have their mental capital tested, even as the signs of an impending bottom pile up.

With employment data coming in stronger than expected this morning, the market will likely keep believing that the FED will continue to jawbone a sustained aggressive rate hike path, with the "strong economy" narrative as impetus.

Thanks, and have a great week.

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.