It could still be weeks before we recommend a gold or silver trade, but the precious metals are beginning to look interesting. Since last summer's high, gold has been in a brutal downward trend which has formed the handle of what appears to be a massive cup and handle pattern. It could also be considered a massive bull flag. Either way, we could be near the low.
Near term, gold has reached a resistance level near the 50 day moving average right as the 5 day RSI is reaching overbought levels. This is not the ideal setup for a trade you want to be buying into now, which is why we are not recommending buying in yet. We are also on day 22 of the daily cycle for gold which means it is about time for a DCL. Once the next DCL is complete that will be the ideal time for entry.
Silver, gold, and other hard assets stand to benefit from the broader rise in inflationary pressures likely to accompany Washington's spending spree. It's all being facilitated by debt issuance and the Federal Reserve's printing press, which it uses to buy the government bonds that no one else will. Given the extreme nature of the inflationary policies now being pursued in Washington, we still believe you shouldn't expect the 2020 highs in gold and silver to be any kind of ceiling.
The Speculation page is used for educational purposes and to talk about our opinion on trades and what is going on in the market. All trade recommendations are made in "The Pit". This is also a blog page where you can ask questions, post your thoughts, or ask for help. Be sure to use an anonymous name. If you have any questions feel free to reach out to us via email.