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Contributed Commentaries

CPI: Gold and stocks - time to fly?

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

Commentaries & Views

It’s no surprise that gold was at a technical inflection point just ahead of the CPI data this morning. The below 4-hour chart shows the price hitting the top of the channel I have been showing for quite some time (with the expectation that the price would get here).

A breakout to the topside would reinforce the notion that gold is set to move higher in the medium term and maybe a signal to add to positions for those already long on this trade or perhaps to initiate a position if on the sidelines. I still think the test for bulls will be at the 50-day MA shown on the daily chart below.

Of course, I will be watching out for a dip that bulls step into buy on this morning’s inflation data.

I am still not adding to positions in the stock market yet: That said, again, triangles like to break to the flat side, and one is forming with that flat side just about at the 4500 level I have been showing for quite a while on S&P futures.

I am braced for volatility and will be watching daily closes heading into this week’s candle.

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.