Craig Hemke, Editor of TF Metals Report, joins us to review his technical outlook for gold, in the event of a corrective move, as it tests the key $1673 support today. We again review some similarities in that chart from 2011-2013 compared to the chart from 2020-2022, but also point out some of the key differences in the macroeconomic backdrop between then and now. If we do see a plunge, as sell-stops get triggered in the near-term, then while we may see a brief capitulation move lower in gold, Craig feels it will not result in a 5 year desolation.
One constructive area we discuss is the recent outperformance of silver over gold, the bullish contrarian reading in the COT reports, and the general bounce we saw recently in copper despite the higher US dollar. This could present a scenario where silver is signaling that it already bottomed and bounced, and that the drop in gold may be more short-lived to where it’s COT report is more similar to that of silver.