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Gold/Silver: Christmas came early

Phillip Streible

Kitco Commentaries | Opinions, Ideas and Markets Talk

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

Commentaries & Views

The Santa Clause rally is underway in Precious Metals, with Christmas fast approaching. This week, Santa Clause himself, "Jerome Powell," delivered a speech as a present, where his unexpected "dovish" comments lit a fire under risk assets. Two remarks, "I don't want to over-tighten" and "it makes sense to moderate the pace of interest rate hikes," started the party. I might make up some Holiday Cards with those two phrases and send them out to clients.

Intraday Gold Chart

As the year turns another digit and the tax year ends, investors generally rebalance their portfolios which historically helps fuel the strength. Platinum generally makes its seasonal low around December 9th, while Silver and Gold enjoy their last dip before peaking again in January and February. The monthly chart of Silver shows a hard bottom at $18/oz is most likely in place. To further help you develop a trading plan, I went back through 20 years of my trading strategies to create a Free New "5-Step Technical Analysis Guide to Gold that can easily apply to Silver." The guide will provide you with all the Technical analysis steps to create an actionable plan used as a foundation for entering and exiting the market. You can request yours here: 5-Step Technical Analysis Guide to Gold.

Monthly Silver Chart

Our Strategy

For those sitting on the sidelines, I am suggesting a Micro 10 oz Gold strategy where we see value in scaling in at 1760, 1730, and 1705 with a "stop close only" down at 1675. With regards to Silver, we will be focusing again on the 1000 oz contract and looking at entry levels at $21.75 and $20.95 with a "Stop close only" at $19.90. For Platinum, we will be using the 50 oz contract and looking to enter near $1005 with a stop close only at $970. If you have never traded futures or commodities or would like to learn more about taking delivery of Silver, I just completed a new educational guide that answers all your questions on transferring your current investing skills into trading "real assets," such as the 1000 oz Silver futures contract. You can request yours here: Trade Metals, Transition your Experience Book.

By Phillip Streible

Contributing to kitco.com

Contact phil@bluelinefutures.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.