Nick Santiago: Silver Breakout Has Begun, Gold to Follow After Hitting US$1,500

TL;DR

Gold is expected to continue its decline and reach the $1500 level, presenting a buying opportunity for investors.

Transcript

thank you I'm Charlotte McLeod with the investing youth Network and here today with me is Nick Santiago CEO and chief Market strategist at inthemoneystocks.com thank you so much for joining me online once again it's great to see you it's great to be back thank you for having me it is and it's been a little while I think the last time we spoke was a... Read More

Key Insights

• 👣 Gold is on track to reach the $1500 level, presenting a buying opportunity according to technical analysis.
• 🤨 The strength of the US dollar is a temporary factor influencing gold prices, and a pullback is expected once other nations raise interest rates.
• 🙃 Silver is showing strength and may lead the way for precious metals, with a potential breakout and significant upside.
• 🥺 The Federal Reserve's tightening policies and supply chain disruptions may lead to a recession, impacting the stock market negatively.
• ☠️ Technology stocks should be approached with caution as the Fed continues to hike rates.
• 👋 Oil and consumer goods stocks, such as Colgate and Church & Dwight, are areas of interest for investors seeking stability.

Questions & Answers

Q: What technical factors indicate that gold will reach the $1500 level?

The CEO points out that a double top formation in the gold charts and institutional reset at the $1500 level suggest a buying opportunity. Gold's failure to break out at resistance also supports the bearish outlook.

Q: How does the strength of the US dollar impact the gold market?

The CEO explains that the dollar's strength is relative to other currencies and not due to its inherent strength. As other nations raise interest rates to fight inflation, it could put pressure on the dollar, leading to a potential pullback.

Q: What is the Federal Reserve's role in the current economic situation?

The CEO believes that the Federal Reserve is behind the curve in raising interest rates and stopping quantitative easing. Their tightening policies and supply chain disruptions may lead to a recession. However, the market expects the Fed to continue its rate hikes.

Q: Despite geopolitical tensions, why is gold still below $1700?

The CEO attributes gold's dislocation to market sentiment, which is influenced by technical factors rather than external events. However, the CEO is optimistic about silver, which has broken out and indicates a growing interest in tangible assets.

Q: What is the CEO's outlook for silver?

The CEO considers silver to be the preferred precious metal and expects it to reach above $30 per ounce within a year. Silver's recent breakout and historical performance support this outlook.

Summary & Key Takeaways

• The CEO and chief Market strategist at inthemoneystocks.com predicts that gold will continue to fall and may reach the $1500 mark.

• Institutions are likely to use the $1500 level as a buy point, leading to a potential surge in gold prices.

• Despite the recent decline, silver is showing strength and has the potential to break out and lead the way for precious metals.