Gold Today Vs. Silver in 2021 Suggests Metals Can Resume Lower
2023.12.05 02:54
has been trading lower for the last few weeks as bets for potential rate cuts in 2024 are increasing, but FED’s Powell on Friday hinted that it may be too soon to look for that direction of lower rates. But they surely can cut if inflation continues down in months ahead as stated by some other Fed members. So economic data will be important in weeks and months ahead. We have the US NFP report on Friday with expectations of 175k in November from 150k in October, and the unemployment rate at 3.9%.
More importantly, soared at the open this week, with prices spiking to new highs, due to increasing geopolitical tensions in the Middle East, but most likely because of “over-crowded” trade bullish trade that rarely works. It appears that there is just “too much” optimism on metals because everyone believes that geopolitical tensions and potential rate cuts in 2024 will make gold much more attractive.
This spike in gold reminds me of silver back in 2021, when “over-crowded” bullish trade caused the opposite reaction. So on gold, can be very similar now, especially as a drop from ATH looks like an impulse that can be headed back to an important 2k area.
Gold today vs Silver 2020-2021
Gold intraday chart
