We have been strong bulls of Gold and precious metals since 2018 and even more of Silver where we recommended investors to BUY SILVER again at US$ 12 oil March 2020
However, today we advise investors to bail out of Gold, Silver and Precious Metals altogether.
After a massive rally that has taken Gold to almost 2’100, the precious metal is consolidating at an extremely overbought and overextended level and investors are very long the precious metal.
After a tentative breakdown in September, the subsequent rally failed to push prices above the short term moving averages, and we fear another breakdown to come soon.
Moving average CONVERGENCE DIVERGENCE are sending confirmed SELL signals on both Monthly and Weekly Charts
Although Silver is way below where Gold is and demand for Silver for industrial use is bound to rise due to electronics, Electric Vehicles and Solar Power, in the short term, we see Silver at risk of a break down and would only buy it down to US$ 20
Although the short term chart of Palladium is still constructive, the long-term chart shows a Lower top and a SELL signal on the Moving average Convergence divergence
Platinum is the most attractive of the precious metals when looking at the long term picture but the short term picture points to a possible break down towards 600.
As we are moving into a risk-off environment, we strongly advise investors to exit Gold and Precious Metals temporarily.
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