Burl Ives trade not looking too good right now (Silver & Gold)

As the DXY rises, commodities generally will fall. Even though GOLD sometimes is thought of as more of a defensive asset and inflation hedge, that theory has been moot lately.

SILVER and GOLD (the Burl Ives trade) will continue to languish in these downward channels on the weekly charts as long as the dollar is remaining strong. They are both extremely oversold on the RSI, but with the dollar as a headwind, the oscillators and indicators don't matter as much.

Gold and Silver are essential for electronics; especially those to do with space and healthcare. but would be a no-touch area for me personally until I see the DXY break below 110 with an apparent break in the upward trend.

If high inflation can't get Gold going, then I don't know what can.

If the dollar does drop and the momentum for commodities changes, I would be looking to buy GOLD at 1600, SILVER at 18, then sell GOLD around 2,100, and SILVER around 27.

Kommentar:

Now might be time to reconsider

Kommentar:

Run it.