Gold/Silver: Are you positioned for another Silver squeeze?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
We saw another major extension this week in precious metals, as buyers remained relentless, and we expect them to stay active well into the start of the new year. Seasonally, December and January are the two most bullish months, especially for gold, platinum, and silver. Earlier today, I sent out a study to our clients on the seasonal analysis of platinum rising 15 out of the last 15 years and silver 14 out of the previous 15 years during this time frame.
Daily Silver Chart
We will see the latest CPI read on Tuesday, followed by the FOMC decision on Wednesday. The latest reading from the CME's FedWatch Tool indicates an 80% chance of a 50 bps rate hike and a 20% chance of 75. These two volatility-driven events could give you another entry point on precious metals where we expect any correction to be shallow. 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.
Daily Gold Chart
2023 should show declining inflation, lower corporate profits, and periods of varying degrees of recession in the United States and Europe. The labor market should begin to suffer, causing the Fed to pivot when yields peak around 5.25% in March. Historically, when the last rate hike is in place, the equity markets have already bottomed, and a new bull market rally begins over the next 12 months. Investors have already started rotating into natural resources, base metals, industrial metals, and precious metals in anticipation. 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.