opinion

A medium term trend change in Gold? S&P approaches key level

Kitco Media
By Jonathan Da Silva
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I thought the bounce might make it to $1990 last week, but bulls fell $5 short, with a top seemingly having occurred at the $1985 spot. Price has now broken below the trend line I have been showing; again, caution is warranted on the long side.

Weekly gold:

Note support in the $1860/45 region, which coincides with a mean reversion to the bottom of the weekly Bollinger band range. In my opinion, weekly momentum should stretch all the way down and turn back up as one indicator that a price bottom is forming/in.

In the meantime, S&P futures have just a hair to go before touching the top of the resistance level I’ve pointed to for quite some time. Traders can decide whether they are content with a profit or want to wait to see if an upside breakout of the triangle occurs. If a breakout occurs - I think the next long target is 4500, as shown in the daily chart below in blue.

If you bought indices in fall/winter 2022 when I originally took on a contrarian stance – you can probably afford to continue to hold for more evidence that at least a medium-term top in stocks is imminent.

Thanks, and good luck

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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