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Santa warming up the sleigh for a rally?

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

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

Commentaries & Views

The battle for $1750 gold continues, but as regular readers will know, this trader remains in the bull camp for a test of the $1810 level. Over $1810 and bulls have $1875 to look forward to-  but should expect another battle at $1850. Battles will be fought on the way to winning the war with your physical stashes.

It is no secret that we have also been bullish on the stock market dating back to mid-October. Since, we had suggested that overhead resistance on the weekly chart would pull price up. Further, we posited that should the topline resistance give way to bullish pressure, consideration of whether the bull market is back on would be merited; the weekly chart below is another update of SPY.

Although we aren’t there yet (and traders may take profit prior to obvious resistance), there is one important correlated asset that points to the likelihood of further gains. That is the orderly descent of the US 10 year bond yield. The below weekly chart shows a significant support level where a confluence of technical markers intersect, which in this traders opinion, may pull rates down further. Should this occur in a continued orderly fashion- the stock market will in all probability continue to enjoy the relief.

Thus far, the current setup is conducive to further gains for stock and metals bulls.

Thanks and have a great week.

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.