New price targets for gold and silver were just issued after yesterday’s big breakouts!

There may in fact be a Silver lining- literally
January 20 (King World News) – Top Citi analyst Tom Fitzpatrick:  The technical picture on Silver (and Gold for that matter) is staring to look quite constructive.

The setup on Silver looks like a double bottom like that seen in Q4, 2020 that culminated in a move back towards the $30 area in early Feb 2021.

Silver’s Price Target Is Now $30

A break above $24.41-$24.61 (Double bottom and downward sloping trendline) would suggest a similar outcome.

Gold continues to trade in a fashion very similar to 2011-2012 suggesting at least a return towards $1,917 again.

A break above there, if seen, would be significantly more bullish and complete a double bottom that would suggest a move towards 2,100.

First Pulse For Gold Will Be $1,917
Followed By $2,100 Target

A couple of things worth noting here…

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·         Last year as nominal and real yields surged higher in January (10-year yields surged nearly 29 basis points from the 4th to the 12th of January) Silver and Gold got hit. Silver fell 14% from the 6th to the 18th January and Gold fell 8% in the same period

·         The USD-index rallied from 89.20 to 90.95 in the same period.

·         This year between 3rd and 19th January US 10-year yields soared 37 basis points. Since 7th January Silver has rallied over 10% and Gold has rallied over3%

·         In the same period this year the USD index is down about 70 pips.

Quite a different picture to this period in January last year. What is that telling us?

·         The focus on inflation is in a completely different place now to then. The transitory assessment is well behind us.

·         The question now is how much the Fed is going to push back on inflation and how effective it will be given the complicated mix of supply and demand factors.

·         Either-

o   The Fed adjusts to meet the demand side of inflation but does not take risks with economic growth- Supply side inflation remains elevated and demand side does not drop sharply because the economy stays relatively robust- Good for Silver and Gold.

o   The Fed takes a more aggressive approach which bears down more strongly on demand while having limited effect on the supply factors leading to concerns of stagflation- Great for Silver and Gold.

Formerly In The Shadow Of Digital Gold
Last year precious metals likely also struggled in the shadow of “Digital Gold”. That is now a more institutionally owned asset and having its own problems (and likely mark to market dynamics) which at the margin might see Silver and gold behave like the normal “inflation hedges” they have been in the past (particularly the 1970’s).

Overall a picture that seems to be developing that is making these commodities/currencies look precious again.

ALSO JUST RELEASAED: GOLD & SILVER SHORT SQUEEZE: Mining Stocks Explode Higher As Short Squeeze Underway CLICK HERE TO READ.
Gold Up $25 And Silver Surges Back Above $24m But Look At These Big Surprises CLICK HERETO READ.


To hear Gerald Celente discuss surprises for 2022 CLICK HERE OR ON THE IMAGE BELOW.

To hear Alasdair discuss the gold and silver markets and more CLICK HERE OR ON THE IMAGE BELOW.

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