opinion

Metals exhaling before the next move

Kitco Media
By Jonathan Da Silva
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The levels precious metals bulls are watching are $1,785 gold and $20.50 silver, to the upside. A weekly close above those levels would signal further immediate strength. Downside support should come in at $1,745 - 50 for gold and $19.40 - 50 for silver, but prices could shake down all the way to $19.20.

The below 4-hour charts show the support zones for the respective metals, in yellow. Notice stochastics have bottomed and are looking to turn up again (caution: this does not mean lower prices can't manifest first).

Silver actually looks bullish as of this writing; an intraday pop to $20.40 would not surprise.

However; the big catalyst is Friday's jobs report. With chairman Powell iterating the key phrase "data dependent" in regards to the future aggression of the Feds rate hike path, the market may "sell" USD on bad economic data as it discounts future rate cuts, putting a tailwind behind the metals.

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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