I'm a little agnostic on the metals, because on the one hand, unprecedented central bank interventions should lead to inflation, and these are the two most accessible and obvious hedges against that. On the other hand, I believe that the deflationary forces trying to assert themselves in the world were abruptly arrested by those very interventions.
So, do we go up because of inflation or down because of deflation? I tend to lean toward further deflation.
Now, my gold chart, which I have posted several times, still stands: I see a rising wedge with weakening buying. Likewise, with silver, I see a similar structure, though on a shorter time-frame than gold. Interestingly with silver, the RSI bearish divergence is quite sharp between the last two recent daily highs at 18.38 and 18.44. While eking out a new high in price on the first of July, it came nowhere near printing a higher high on the RSI.
That said, keep an eye on it. If it shoots to the moon, that divergence can be reversed into convergence. But I believe it would take a very large move to do so.
So, do we go up because of inflation or down because of deflation? I tend to lean toward further deflation.
Now, my gold chart, which I have posted several times, still stands: I see a rising wedge with weakening buying. Likewise, with silver, I see a similar structure, though on a shorter time-frame than gold. Interestingly with silver, the RSI bearish divergence is quite sharp between the last two recent daily highs at 18.38 and 18.44. While eking out a new high in price on the first of July, it came nowhere near printing a higher high on the RSI.
That said, keep an eye on it. If it shoots to the moon, that divergence can be reversed into convergence. But I believe it would take a very large move to do so.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.