opinion

Metals bid as USD strength eases

Kitco Media
By Jonathan Da Silva
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The short-term bounce we suggested last week has materialized after a brief overnight move down to $1,785 on Sunday. Silver has also pushed higher, now trading back in the zone between $21.50 and $22.10. The gold to silver ratio (shown below) may be in the process of coming down to back-test its break out, indicating that metals have room to move higher in the short term.

A look at the USD shows a consolidation is in progress as the breakout above long-term resistance did not follow through higher. US indices are also catching a bid this morning. Should the dollar continue lower with conviction and form a “false breakout,” that may become a tailwind for stocks and metals and extend their relief rallies into the medium term, at the least.

Thanks and have a great day,

Kitco Media

Jonathan Da Silva

Jonathan Da Silva developed a passion for hard money and economics from a young age having been influenced by family who sought to teach me that "nothing is free", and the importance of intrinsic value early on. My interest in markets grew keener during the great financial crisis of 2008; leaning on family with vast trading experience, I began to self-educate on technical analysis and economics- drawing inspiration from the works of individuals like W.D. Gann and Adam Smith. I have been a proud member of the Kitco team since 2017 and hope that my writing inspires readers to consider an objective view of the metals, and the greater financial markets.

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