opinion

Is $1,850 gold now support?

Kitco Media
By Jonathan Da Silva
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As the dollar has weakened, gold has found support at $1,850. Although silver has yet to break out and stay above $22.10, a breach of that level looks increasingly probable. The USD continues to look set to retreat to the bottom trendline shown below (originally shown last week). Caution; the macro backdrop remains conducive to sudden volatility in all asset classes. Another close over $1,850 for gold would open the door to $1,885 and then $1,900.

Stocks have not benefitted from the recent weakness in the USD to the same extent that gold has. Truly, gold has been a reliable store of value thus far in 2022 when measured against major US indices. The 200-day moving average in the S&P500 is likely the most obvious place for support in the medium term. Still, with every trader in the market aware and likely anticipating a test of the 200dma, a convincing relief rally may materialize first.

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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