It has been a challenging two weeks for Precious Metals as bottoming action in the U.S. Dollar, followed by a steady rise in interest rates, has put pressure on the bulls. Outflows from ETF holdings this week confirm that theory, as we knew that once Silver breaks out from its multi-month sideways wedge, it would either attract new buying interest on the upside or further liquidation on the downside. Reports overnight that Russia plans to cut its March Crude Oil production by 500,000 barrels a day will create an underlying bid on the energy markets, further straining the consumer and the global economy. Eventually, the recession will pressure long-term rates lower, resulting in elevated Gold prices and further cementing a hard floor and another path through $2000/oz.
Daily Silver Chart
Next week will offer another round of inflation data with CPI on Tuesday, Industrial Production on Wednesday, and PPI on Thursday. If CPI and PPI show decreases and Industrial Production picks up, we could see a boost to the Precious Metals complex. For those waiting for a correction in Silver and Platinum, we find long-term value at $21.85 and $950. To further help you develop a trading plan, I went back through 20 years of my trading strategies to create a Free New "5-Step Technical Analysis Guide to Gold that can easily apply to Silver." The guide will provide you with all the Technical analysis steps to create an actionable plan used as a foundation for entering and exiting the market. You can request yours here: 5-Step Technical Analysis Guide to Silver.
Daily Platinum Chart
In the near term, if your goal is to capitalize on precious metals' price direction, we recommend that you consider looking into the Futures markets. The Futures are the most liquid, capital-efficient, pure price play without all the headaches of investing in physical. If you have never traded futures or commodities or would like to learn more about taking delivery of Silver, I just completed a new educational guide that answers all your questions on transferring your current investing skills into trading "real assets," such as the 1000 oz Silver futures contract. You can request yours here: Trade Metals, Transition your Experience Book.
