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Gold: A setup at support

Kitco Commentaries | Opinions, Ideas and Markets Talk

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

Commentaries & Views

In my last piece, I showed a trendline for where I thought gold would likely find support; today, gold is bouncing strongly off that same line - shown in an updated daily chart below. With momentum turning up, traders can pick a spot to enter on the long side to ride this bounce to $1990, perhaps all the way to $2010. For stackers who are dollar-cost averaging – this may be a spot to add.

The question is whether gold has the wings to go on a run past all-time highs into unknown territory before the price makes another lower low. Will we see a test of the notorious $1850 level first? In my opinion, traders should beware of a downside breach of that trend line around $1930.

S&P futures have now reached into the yellow box; regular readers probably aren’t surprised. I still believe the price will stretch to the top of the box. Can stocks get back to all-time highs in 2023? The answer is yes, but I have yet to judge that probability.

Finally, here is an update on the 4-hour Bitcoin chart I last showed. The bitcoin price is following the channel I had presented, updated below. An upside breakout would likely take the price back to 31k and then higher, in my opinion.

Thanks, and good luck,

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.