Make It or Break It for Gold and Silver

Gold and Silver Investment Outlook Post-Fed Rate Cut

The Fed has ended its tight monetary policy with a 50 bp cut yesterday. This can only be good for Gold and Silver going forward. However, stocks may be less fortunate. While equities can continue to higher highs, history shows that when an easing monetary cycle begins, it does not bode well for stocks. In summary, the big picture remains firmly up in precious metals, but the risk of a stock market crash has increased—it’s only a question of when. The 2-Year/10-Year yield curve has just turned positive again. If 2019, 2006, and 1999 taught us anything, such a move in the yield curve signals that a crash in equities is not long to follow.

Short-Term Gold and Silver Price Movements

Back to the short term…

Silver is playing yo-yo now between $30 and $31.60:

The 4-Hour chart shows a crystal clear negatively divergent higher high in Silver, when Silver is also extreme bullish and the Banks desperately want to get out of their short positions.

That said, we must respect the trend, which remains firmly UP.

In summary, if Silver breaks $31.60, just buy, imho. However, the risk of a short-term drop to as much as ~$29.50 remains. If it gets there, I plan to buy. However, if it falls below $29.50, then look out below—and place a tight stop below there.

Gold and Silver Buying Opportunities and Strategy

Gold is even simpler than Silver.

The key support level in Gold is $2540-$2560. If that holds, Gold could continue to $2700 next. But it too is extremely bullish, overbought, and negatively divergent on the 4-Hour chart. The Banks want to get out of their shorts in Gold too. Last but not least, Gold is in a bear flag pattern, which suggests it is overdue a correction sooner or later.

As in Silver, support at $2540-$2560 is a buying opportunity with a target of $2700 next, but place a tight stop below $2540.

The big picture remains clearly up. Any pullbacks should be bought, imho. But keep an eye on the stock market, because if and when it dumps, the metals are likely to suffer a sharp but brief drop. Don’t be surprised by it, but I will certainly be buying that dip. Until then, as you were. Upward and onwards, short-term corrections aside.

Buy gold bars and silver bars today to secure your investment and leverage market trends.