Gold/Platinum/Silver: Here is the floor
Posted: April 22, 2022, 11:47 a.m.
It was a tough week for the PMG complex if you carried your long positions past the April 18th seasonal exit. For those who followed the Platinum seasonal, you should have booked $1,335/contract. We will continue to use short-term weakness to boost holding in PGMs, focusing on adding long positions in Gold and Silver.
Taking a deep dive into Gold, it is holding up with low volatility despite higher interest rates and a stronger Dollar. At the IMF conference, Fed Chair Powell said: "it's appropriate to move a little more quickly." He added that a 50-basis point hike is on the table, and it is "essential to restore price stability." We believe this aggressive Fed action triggers the risk of a recession, causing investors to dump risk assets and move back into safe havens (Gold, Treasuries, and the U.S. Dollar). To further help you understand the macro environment, we created a free "Gold Trends Macro Book". This monthly updated booklet will provide you with all the quantitative analyses of the precious metal markets. You can request yours here: Free Gold Trends Macro Book.
Daily Silver Chart
Daily Gold Chart
Our Strategy
We believe that Gold prices will remain elevated well into 2022 and accelerate higher as the economic fallout begins while inflationary pressures continue. We expect global supply chains to stay fractured until 2023 with increasing geopolitical risk. We will continue to take a disciplined approach by scaling in incrementally on Gold/Silver/Platinum at critical support levels by utilizing the 10 oz Gold contracts, 1000 oz Silver contracts, and 50 oz Platinum contracts. To learn more about transferring your current investing skills into trading "real assets," such as the 10 oz Gold futures contract. You can request your free guide here: Trade Metals, Transition your Experience Book.
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