opinion

Will metals pick a direction already?

Kitco Media
By Jonathan Da Silva
Published:
Updated:
Kitco Commentaries
Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

As expected, volatility manifested and early, especially in silver, as the metal was sold down yesterday indiscriminately from its opening high of $22.50. Although the consolidation zone between $21.50 and $22.10 remains, it is pretty clear that the big number silver needs to cross is $22.50. Silver has tested the level thrice in the past three weeks.

Platinum was rejected off $1,035 but held $1,000 overnight. It is quite normal for platinum to pause after its recent run-up before a leg higher, but to keep the move over $1,035 alive - bulls want to see 4 digits hold.

The USD index has indeed found support off the bottom channel of its upward trend (shown below), for now.

Is the USD in the process of topping? Friday’s CPI data may be the catalyst needed to drive a sustainable reversal in the dollar.

Thanks and have a nice 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.

Mdi Earth Logo

Tags:

Contributed Commentaries
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.