The PBOC infuses $174 billion into the Chinese language system, equities rally and metals promote off a small quantity. As we take a more in-depth look, gold has discovered assist and may be headed again to the $1,600 degree based mostly on April futures, and silver appears prefer it’s headed again to the $17.50 degree based mostly on March futures.
The markets are performing as they need to after Friday’s sell-off. There’s a dead-cat bounce in equities and a few promoting stress within the metals. The value motion appears wholesome in gold and weak in silver, main us to imagine the current worth motion ought to proceed.
Silver has been weak since late December and can most likely take a look at the December lows, whereas gold has been robust and may take a look at the December highs. We proceed to be lengthy gold and brief silver. We’ll stay in these positions till worth suggests a change, which doesn’t look like taking place anytime quickly.
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