Although the U.S. Markets are closed today for Presidents’ Day, markets still trade electronically until 1:00 EST. The trends have not changed, with equities making new highs once again; crude oil is exploding higher and bonds are getting crushed.
Gold continues to be under pressure and further separating from silver. Platinum remains in its own trading world, now trading over $1,300, a 7-year high. The trends are clear: gold in a downtrend and in danger of collapsing while silver and platinum remain in uptrends.
For now, the critical level to watch is $1,800 April gold; a close below there would bring $1,750 and $1,700 into play. If silver can get above $30, it could be off to the races and $1,400 April platinum is huge. We will stay with the trend and look for the gold/silver ratio to continue to fall; as of today, it is 65.
There is a much bigger story underneath the surface of the bond and gold markets. While the geniuses from the FED continue to tell us there is no inflation, bonds disagree. There is no question inflation is well above the FED’s antiquated way of tracking. The bonds are calling for inflation while gold is not. Which one will be right?
On Saturday we presented our Hedging Model. Below is the recording
Learn to Hedge your Portfolio Recording from Saturday
We have also included a registration link for session 6 on Friday February 19th at 5:00 EST
2021-02-19 Options Training Session 6 Register here
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.