opinion

Metals well off the lows - what's next?

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

On July 22 we wrote that “In this trader’s opinion, the weight of evidence is strong that metals either have, or are very close to beginning a sustained counter move to the relentless downside action” and posted the two following charts to show potential short term targets.

This morning those targets have been hit: Swing traders may already have locked in profit wehereas positional traders should be aware that the first pullback of the current move off the low could shake their belief that higher prices are yet to come.

On Wednesday, we showed the Gold to silver ratio breaking about above a key Fibonacci level and suggested that the catalysts we in place for a reversal; that has also transpired. The updated chart below shows the extent of the reversal, and suggests higher prices lie ahead for the metals in the medium term.

Thanks and have a great week,

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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