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Gold, silver bulls have the momentum, how much higher?

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

Commentaries & Views

I suggested pressing the metals trade by flipping a profitable silver position into gold. If you stayed in silver, you captured the alpha on this move, congrats.

Both metals are now facing resistance at their overhead trendlines from their May highs; both daily charts are shown below.

Silver:

Gold:

Last week, I also noted the potential for the trade to morph into a positional one rather than a swing; the action this week thus far is convincing me to hold onto the gold. That said, there are still two important catalysts for volatility this week, with PCE data tomorrow and job numbers on Friday. If you are looking to skirt the emotional reverberations and a possible mistake, a flip from silver to gold may still be the way to play it.

Overall, I think this move deserves the benefit of the doubt, and I will be watching the $1960 - 75 price level in Spot Gold next.

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.