Silver surges. Gold to catch up as Nasdaq keeps falling?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
I ended Wednesday's metals commentary: "Bulls should brace for volatility, but barring an intraday reversal, the game will be to hold on for the next gold target around $1965 and that all too familiar $24.20 level for spot silver.”
Volatility came in spades as gold did, in fact, put in an intraday reversal Wednesday - topping out at $1950 spot; silver came close but did not reverse all the way. Yesterday's action was the opposite of Wednesday's, with metals starting lower and reversing higher intraday. That is a bullish signal.
Also bullish, in my opinion, is the fact that silver is leading metals higher this week. A look at the daily gold-to-silver ratio chart, during metals price whipsaws, smooths out the volatility and could help keep traders emotions in check.
Silver looks even more primed to get back to the top of the range than it did last week:
There seems to be a concerted effort to keep gold under the descending trendline (and 200-day moving average)– updated again on the daily chart below.
Although bears succeed in stuffing another breakout attempt (for now), I continue to give this long trade the benefit of the doubt. The game is still about holding on, with targets at $24.20 for silver and $1965 for gold (or higher).