From Dystopia to Utopia in Gold & Silver
David Brady

This article will be short but very sweet. We’re finally approaching the lows in Goldand Silver, which will coincide with the peaks in the 10-Year Yield and the DXY.

The Banks are racing to cut their short positions in the precious metals. They cut their net short position in Silver by 50% last week alone.

Sentiment is falling to bearish levels consistent with prior major lows. The same goes for the RSI. As for the 10-Year yield and the DXY, they have been in lockstep since December 11. Both have also been almost perfectly inversely correlated to Gold.

The dollar and the 10-Year are undergoing a mini dip. But I expect the next peakfor the 10Y to be 4.25-4.35%.

 At the same time, I expect the DXY to peak at 104.50-105.

Assuming these correlations continue for the next week or so, this will signal the bottom in Gold is somewhere in the mid-1900s.

Gold reached a low of 2005 on Wednesday. That’s a decline of $147 from its peak at 2152. I estimate that the low in Gold is now just ~$50-80 away. I expect Silver to fall below 22 also.

Simply put, the corrections in Gold and Silver are coming to a close. The peak in the 10-year and the DXY will signal the beginning of the rally to new record highs in Gold. My target for Silver is 28-30. Then the 10-Year will fall below its low of 3.78% while the DXY breaks 100 and heads down to the 90s. This will support the coming massive rally in Gold. Silver will enjoy even bigger percentage gains.

 

David Brady has worked for major banks and corporate multinationals in Europe and the U.S. He has close to thirty years of experience managing multi-billion dollar portfolios including foreign currency, cash, bonds, equities, and commodities. David is also a CFA charter holder since 2004.

Using his extensive experience, he developed his own process utilizing multiple tools such as fundamental analysis, inter-market analysis, positioning, Elliott Wave Theory, sentiment, classical technical analysis, and trends. This approach has improved his forecasting capability, especially when they all point in the same direction.

His track record in forecasting Gold and Silver prices since has made him one of the top analysts in the precious metals sector, widely followed on Twitter and a regular contributor to the Sprott Money Blog.

 

 

 

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