Bank of America recommends shorting gold against silver at 83.50, with a target of 78.50/75.00 and a stop of 87.50.
Key points:
- gold: Price targets for 2024 at 2368, 2538 and 2643 have already been achieved, with the next target at approximately 2733. However, Bank of America advises against chasing gold at this time due to record extended positioning and momentum levels.
- silver: Silver prices are approaching eleven-year highs, indicating the potential for further upward movement. In contrast to gold, there is more room for oscillators and positions to stretch, with potential upside targets ranging from $36.02 to $40.
- The gold-silver ratio has formed a double top, indicating a positive outlook for silver.
conclusion:
Given current market dynamics, Bank of America’s strategy focuses on taking advantage of the relative strength of silver compared to gold, recommending short positions in gold while targeting significant levels in silver.
For banking trade ideas, Check out eFX Plus. For a limited time, get a 7-day free trial, Basic for $79 per month and Premium for $109 per month. Get it here.
Comments are closed, but trackbacks and pingbacks are open.