While we would never advocate buying a falling knife, we believe metals prices will probably experience some buying dips this week.
why?
At a basic level, nothing seems to have changed.
News that China has suspended gold purchases after an 18-month bullion spree may just be a smart move.
After all, the dollar rose along with yields on Friday, and China has been selling both dollars and yields.
Therefore, it is a good time to sell dollars to get higher yields and buy gold cheaply.
But is China fully done?
perhaps.
But let’s look at some other elements that haven’t changed at all.
- From a geopolitical perspective, Russia sending warships to Cuba is yet another worrying factor to add to the list of concerns.
- Government debt is rising
- Government spending still rising
- Transportation costs remain high, services inflation remains high, and wages are rising.
- AI and EVs will never disappear, but they will inevitably put a strain on raw materials
Then add it to the list
- ECB and Canada Cut Rates – Deglobalization or a Prelude Before the US Joins?
- That’s even higher – it’s not new.
- Weather – Hurricane season is just around the corner, rising ocean temperatures, heat waves, floods/droughts, don’t underestimate Mother Nature
So for us, that means when the fundamentals are intact, we need to look at the charts to time the market.
The Gold Cash Chart dates back to March.
We said that if the money exceeded $ 2100, we should be patient and the highest price.
And after gold gave a high price on May 20thNumberThe next day was an inside day (the price was within the transaction range of the previous day).
It had been preceded by a series of declining days, with a high of $2,450.
Fixing this type of chart pattern (brick wall) usually falls by 5-10%.
5% is about $ 2,330, and 10% is about $ 2,200.
Only a move below $2,100 would suggest a failure and not just a correction.
Silver looks good.
Silver Futures did not have the top of the reversal.
Silver did not fail the 50-DMA.
Silver has returned to major support exceeding $ 29.00
Silver looks attractive if you keep $ 29.50 this week
twitter: @marketminute
The author may hold positions in the securities mentioned at the time of publication. The opinions expressed in this article are solely those of the author and do not necessarily represent the views or opinions of any other person or entity..
