It’s been a challenging two weeks for precious metals as the US Dollar’s bottoming followed by a steady rise in interest rates put pressure on the bulls. Outflows from ETF holdings this week confirm this theory, as we knew that once silver breaks out of its multi-month sideways wedge, it would attract either new buying interest on the upside or further liquidation on the downside. Overnight reports that Russia plans to cut its crude oil production by 500,000 barrels a day in March will create underlying supply in energy markets, further weighing on consumers and the global economy. Eventually, the recession will push long-term interest rates lower, leading to elevated gold prices, further cementing a hard bottom and a continued path above $2000/oz.
Daily Silver chart
Another round of inflation data is offered next week with Tuesday’s CPI, Wednesday’s Industrial Production and Thursday’s PPI. If the CPI and PPI decline and industrial production picks up, we could see a bullish run for the precious metals complex. For those waiting for a correction in silver and platinum, we find a long-term value at $21.85 and $950. To further help you develop a trading plan, I’ve traced back 20 years of my trading strategies to create a free new “Five Step Gold Technical Analysis Guide” that can be easily applied to silver. The guide provides you with all the steps of technical analysis to create an actionable plan to use as a basis for entering and exiting the market. You can request yours here: 5-Step Silver Technical Analysis Guide.
Daily platinum chart
If your goal is to profit from precious metals price movements in the short-term, we recommend that you take a look at the futures markets. The futures are the most liquid, capital efficient, pure price game without all the headaches that come with physical investing. If you’ve never traded futures or commodities, or want to learn more about accepting silver, I’ve just completed a new educational guide that will answer all your questions about transferring your current investing skills to trading “real assets” like 1000 ounces of silver -Futures contract. You can request your book here: Trade Metals, Transition your Experience Book.
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