Gold Goes Vertical – How to Play it Now

Market Overview - Stocks are experiencing volatility, fluctuating between gains and losses as investors assess positive earnings from Bank of America and Morgan Stanley against renewed U.S.-China trade tensions [1][2] - Wall Street is largely overlooking recent trade war concerns, despite U.S. Treasury Secretary Scott Bessent's announcement of price floors to counter China's market manipulation [2][3] Gold Market Insights - Gold is on track for its best year since 1979, having increased over 57% in 2025, but indicators suggest a potential pullback [4][10] - The Relative Strength Index (RSI) for gold is at 82, indicating it is in "overbought" territory, while the Moving Average Convergence/Divergence (MACD) is at an all-time high [9][10] - A short-term price pullback of 4%-5% is anticipated, with potential for gold to retreat below $4,000 [10][11] Silver Market Insights - Silver futures have reached an all-time high, surpassing a 45-year-old record, with a current RSI of 79 and a MACD at the second-highest level of the decade [13][14] - The global silver market is facing a deficit of approximately 117 million ounces, driven by supply constraints and increasing industrial demand, particularly in solar panel production and AI applications [17][18][20] - Silver's critical role in high-tech applications and its unmatched conductivity position it favorably for future demand growth [19][20] Investment Opportunities - Investment in gold and silver remains attractive despite short-term technical headwinds, with long-term bullish sentiment supported by fundamental tailwinds [11][22] - Specific stock recommendations related to gold and silver have shown significant performance, with Kinross Gold (KGC) surging 154% since January [12][21]