NFTRH+; Gold & Silver (futures)

A look at gold and silver futures daily charts, considering the positive (on 30yr average) seasonal and constructive CoT of each metal.

Gold is bumping up above the daily chart moving averages, which are oh so tentatively starting to turn up. Given the positive seasonal average and my own (potentially very) bullish view of gold in 2022 I want to pay close attention to any minor moves that may at some point morph to less minor moves (like getting above the bull gateway at 1920).

RSI has gone positive and MACD is negative but triggered up. Not bad. The chart is not standing in the way of a continued seasonal bounce.

Silver is in a similar short-term bounce pattern to the one that formed in September-October. As has been the case recently (and logically, amid the dropping of inflation expectations in the face of a hawkish Fed and its sidekick, Omicron) silver is under-performing gold and is making at least a double bottom ‘bounce’ of some kind. Trends remain down in silver and there is a lot of work to do if it is going to start taking out very clear resistance areas.

But we can watch the Silver/Gold ratio for signs not only about precious metals leadership, but the wider global inflation trades, which would want to see silver lead. We had a more detailed look at this in one of yesterday’s updates.