Gold lost the upper support zone. No surprise there. Now comes the lower end but also please consider the channel bottom well down in the 1600s.
Silver is trying to hold the SMA 50, but if that is lost our next target is the rising SMA 200. I think it’s coming, just as I think a final capitulation of the bugs is likely to be coming.
Sentiment in gold is terrible and the idiotic #silversqueeze thing is in the past and now maybe we’ll get a running of those bugs too. With sentiment already so poor on balance in the precious metals if we are lucky enough to get a final flush as a definitive sign, that would be a good thing.
The gold sector is a trade only, considering the inflationary dynamics in play. To repeat for what feels like the millionth time over the better part of the last 2 decades, you do not buy gold stocks for inflation. Maybe for a trade during inflation but… not for fundamentals! Some day when this mess deflates again gold stocks could be a longer-term hold on a buy of some future crash.
My plan is to buy a washout and the way the macro looks now (subject to incoming info of course) any tradeable and/or extended rally that results will be a sell at targets we’d lay out when applicable.
