Interview: Downside Support Levels & Inflation, Real Rates, And Fed Rate Hikes
Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to outline some key support levels in gold and silver should the precious metals sector continue correcting down. While Jordan can see the small support levels in gold at $1750, and the recent low at $1721, he feels the $1675 level tested three times this year is more significant, followed by the 40-month moving average around $1620, and then the 50% retracement down to $1565-$1570. In Silver Jordan is still looking at $18.70 as key support.
The discussion then shifts over to the macro outlook, where Jordan expects inflation to start coming down, compressing how negative the real rates are, and the rate of change of inflation coming down will keep a lid on the precious metals and the commodities. He outlined that gold is the leader and has corrected for a year and half, and that other commodities like copper, base metals, and oil already peaked for the year running up to 10-year resistance levels, and he believes they won’t be breaking higher next year, and need to consolidate before making the next move higher in the longer term pattern for commodities.
