Gold and silver may be at a price low; analysts provide key strategic signals!
Source: Cailian Press
Boosted by the positive news that the U.S. and Iran are about to sign a peace agreement, precious metal prices started the week strong. However, this does not mean the risks have disappeared.
MarketGauge Chief Market Strategist Michele Schneider stated that the previous declines in gold and silver represent an excellent long-term buying opportunity. However, investors should wait for technical confirmation before re-entering the market.
She pointed out that the sell-off on June 11 may mark an important turning point in the precious metals market, but it is uncertain whether a lasting bottom has formed. To confirm a bottom, follow-up buying is required after the initial rebound.
She added that, ideally,
In terms of importance, Schneider emphasized that silver's performance is more significant than that of gold.
No Break in Long-term Trend
Schneider stated that if silver truly outperforms gold again, it could in some way signal the arrival of inflation. In addition, silver's industrial use and its potential applications in artificial intelligence, solar energy, and other technological fields, mean that demand will rebound again. Thus, silver's relative strength could play a key role in the next major move in the precious metals sector.
On a technical level, Schneider noted that although silver broke below both the 50-day and 200-day moving averages, it still held its 50-week moving average.
Schneider reminded the market to watch for this week's Federal Reserve meeting. However, the strong buying momentum shows that investors are becoming increasingly confident in the outlook for interest rates and the dollar, while also recognizing the strong long-term fundamentals for precious metals remain intact.
The current U.S. economy is showing an unusual K-shape: low-income households continue to struggle with rising living costs, while stronger consumers and businesses are helping maintain overall economic resilience.
This situation has temporarily eased overall market pressure; falling commodity futures prices, a strong dollar, and eased geopolitical tensions have all lessened short-term inflation concerns. However, Schneider warned that these factors do not remove the long-term structural issues that support gold and silver prices.
She believes that persistent geopolitical uncertainty, rising government debt, ongoing inflationary pressures, and sustained demand from central banks are all factors supporting a long-term rise in precious metal prices. In addition, the recovery of gold demand from the People’s Bank of China is also a positive factor.
At the same time, Schneider pointed out that the market may be underestimating the impact of long-term inflation, especially the effect of large-scale investment commitments related to artificial intelligence infrastructure and global competition for strategic resources.
Editor: Zhu Henan
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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