opinion

Gold and silver down, but not out!

Kitco Media
By Jonathan Da Silva
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Featuring views and opinions written by market professionals, not staff journalists.

After Tuesday night's sharp pull-back, metals bulls are showing resilience, having taken gold back up over $1,850. Silver has gone from a picture of frustration to that of hope in a very short amount of time. Seasoned traders will fight every instinct to act on emotion, choosing to rely on probability; sometimes, the probabilities change quickly.

Should silver realize a close over the yellow highlighted area, a move higher to around $23.50 becomes ever more likely. For gold, a close above $1,865 this week would likely open the door to $1,885 and then $1,900 again. In this choppy environment, traders may elect to wait for a close above the aforementioned levels for a sign that a trending move up (at least in the short term) has begun.

The same goes for the S&P 500, which threatens to close the week within the yellow highlighted area. Should bulls succeed, a move higher back to the top of the box becomes likely. Could gold and stocks be anticipating a longer-term top in the USD?

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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