opinion

Metals pop as dollar drops

Kitco Media
By Jonathan Da Silva
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As the dollar weakened overnight and into the open, so gold and silver caught a bid. Gold is into the congestion area between $1,835 and $1,850, while silver continues to trade between $21.50 and $22.10. Platinum seems to have found support around $935 again, with resistance at $965.

Stocks continue to be pressured, with the 200-day moving average on the S&P weekly interval chart still some 400 points lower. Looking backward shows the 200DMA is to be respected as far as mean reversion, and the price is now approaching a more suitable delta to the average.

The case for the reversal in the dollar at major resistance continues to develop, and the probability has now improved, as a look at the below chart will show. Should the USD close this week at its low or close, the case for a top in the dollar begins to find ground again. The divergence between price and momentum would be another indicator the USD is ready to roll over.

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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