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Gold, silver, stocks surge despite inflation data. Time to buy Palladium?

Commentaries & Views

As I wrote last week and the week before last, as metals cratered, the trade opportunity was still to the long side for a retrace to respective support/resistance levels in the metals.

In fact, I was a little off in gold, suggesting a psychological target of $1850; the breakdown from the triangle on the daily chart (as shown below) was higher up, at around $1,885.

Traders can decide if they are content with profit on the long side as we approach said resistance, which un-coincidentally transects with the now downward-sloping 50-day moving average. Stackers who bought the dip gave themselves a cushion, whereas more prudent, bullish participants can continue to wait to see if the $1885/1900 is reclaimed with conviction. Of course, nothing is free - the downside to prudence could be buying just in time for the first pullback of this run to occur, (as well as having missed the initial upward thrust) possibly causing emotional doubt.

Silver seems to be on its way to the 22.20-.35 target, I suggested, stopping short at 22.10 this morning.

Here too, traders can decide if they are content with their profits on this move. Again, sometimes prices stop just short of resistance before turning down as punters decide they don’t need the extra few basis points.

Special mention of palladium, which is now back-testing a major breakout level connecting the 2001 and 2018 peaks, and took the metal to its all-time high of about $3400 spot. Investors may consider now to be the time to start, or add to existing long-term positions in this rare, strategic metal.

Thank you, and good luck.

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.