opinion

CPI: Gold and stocks - time to fly?

Kitco Media
By Jonathan Da Silva
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It’s no surprise that gold was at a technical inflection point just ahead of the CPI data this morning. The below 4-hour chart shows the price hitting the top of the channel I have been showing for quite some time (with the expectation that the price would get here).

A breakout to the topside would reinforce the notion that gold is set to move higher in the medium term and maybe a signal to add to positions for those already long on this trade or perhaps to initiate a position if on the sidelines. I still think the test for bulls will be at the 50-day MA shown on the daily chart below.

Of course, I will be watching out for a dip that bulls step into buy on this morning’s inflation data.

I am still not adding to positions in the stock market yet: That said, again, triangles like to break to the flat side, and one is forming with that flat side just about at the 4500 level I have been showing for quite a while on S&P futures.

I am braced for volatility and will be watching daily closes heading into this week’s candle.

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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