I have had many people reach out today with concerns about their metals positions. Some wondering if they should exit, some wondering if they should add. Here is my thought, we knew today would be a volatile day as the Georgia run off election results are being tallied and winners are announced. As we get closer to the results it appears, at this time, that the Democrats will win both Senate seats meaning they would control the House, Senate, and the White House. Regardless of political opinion we know that the Democrats have been keen on providing government funding to state and local governments and stimulus. To me that means more spending and more money printing which translates to inflation and a decreasing dollar. You can see a direct correlation between a dropping dollar and increasing metals prices.
There is no better time to add positions then right now. We are trading in a market that is great for metals and stocks. Look at any major financial news network and you can see they all agree bitcoin, metals and stocks are going to have a huge year as people look for safe havens from the dollar to protect their assets value. I don't foresee gold dropping below the 10 DMA. When the 3 day RSI hits oversold levels I see price reverting. Entering or adding to your metals positions near the 10 DMA is the best advice I can give you, the worst thing you can do at this point is exit positions.
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