GOLD AND SILVER TRADE ALERT and MARKETS UPDATE (11:30 pm EDT)
Gold and silver prices are currently at strong support levels and they are also in ideal target ranges for a significant sub-cycle bottom. Furthermore, a sub-cycle bottom is due in both metals by the end of this week. It looks like a good time to go long. I am placing a buy order for both metals for tomorrow's market open. We will be long in gold and silver at the opening of tomorrow's market.
Today's FOMC meeting was uneventful as the Fed kept interest rates unchanged (as expected). The DOW, however, did surge nearly 400 points around 3PM as Fed Chairman Jerome Powell stated in a press conference that an imminent interest rate HIKE was unlikely (some investors had feared a rate hike was possible as inflation remains high). But the DOW gave back all of that gain by the closing bell as the Fed also gave no suggestion of any imminent rate cuts.
We expect at least one of our broad stock market indices (DOW, S&P 500, NASDAQ) to make a new low by the end of this week to complete a final medium-term cycle bottom that will likely be a good spot to buy. We are also expecting a medium-term cycle bottom in crude oil by Friday. Today's sharp correction to $79 (June contract chart) may have been it already, but there is stronger support around $78, so prices could edge lower. For now, let's stay on the sidelines of crude and equities until we see more evidence of a bottom in both these markets.
Gold and silver prices are currently at strong support levels and they are also in ideal target ranges for a significant sub-cycle bottom. Furthermore, a sub-cycle bottom is due in both metals by the end of this week. It looks like a good time to go long. I am placing a buy order for both metals for tomorrow's market open. We will be long in gold and silver at the opening of tomorrow's market.
Today's FOMC meeting was uneventful as the Fed kept interest rates unchanged (as expected). The DOW, however, did surge nearly 400 points around 3PM as Fed Chairman Jerome Powell stated in a press conference that an imminent interest rate HIKE was unlikely (some investors had feared a rate hike was possible as inflation remains high). But the DOW gave back all of that gain by the closing bell as the Fed also gave no suggestion of any imminent rate cuts.
We expect at least one of our broad stock market indices (DOW, S&P 500, NASDAQ) to make a new low by the end of this week to complete a final medium-term cycle bottom that will likely be a good spot to buy. We are also expecting a medium-term cycle bottom in crude oil by Friday. Today's sharp correction to $79 (June contract chart) may have been it already, but there is stronger support around $78, so prices could edge lower. For now, let's stay on the sidelines of crude and equities until we see more evidence of a bottom in both these markets.
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