Former Head of JP Morgan’s Commodities Desk Robert Gottlieb breaks down today’s VIOLENT 10% CORRECTION in silver- was this simply a SHAKEOUT, or the START OF SOMETHING MUCH LARGER?
“Major selloff in precious metals today, with gold down 2.5% and silver down 9%, as broader risk-off sentiment hits markets.
Equities are under pressure, while USD interest rates and crude oil prices are moving higher.
Yesterday, I warned that the setup was in place for a potentially violent correction (see my prior post below for the reasoning).
We’re now seeing that play out, with EFPs moving sharply lower alongside price.
That said, my long-term thesis has not changed.
The geopolitical backdrop remains highly uncertain.
Silver continues to be a critical industrial metal, and the structural supply/demand deficits in precious metals still matter.
What we’re seeing now is a healthy clearing out of weak new longs and speculative positioning that had become crowded.
These types of shakeouts, while painful in the short term, are often necessary for the market to consolidate, reset positioning, and ultimately work its way higher.
Major takeaway:
Violent corrections are part of bull markets.
The key question is whether this becomes a temporary cleansing event or the start of a deeper repricing. What are you watching most here: rates, crude, positioning, or geopolitics?
#Gold #Silver #PreciousMetals #Commodities #Markets Views are my own, for informational and educational purposes only, and not investment advice. #Gold #Silver #SLV #PreciousMetals #Commodities #Investing ”
“Major selloff in precious metals today, with gold down 2.5% and silver down 9%, as broader risk-off sentiment hits markets.
Equities are under pressure, while USD interest rates and crude oil prices are moving higher.
Yesterday, I warned that the setup was in place for a potentially violent correction (see my prior post below for the reasoning).
We’re now seeing that play out, with EFPs moving sharply lower alongside price.
That said, my long-term thesis has not changed.
The geopolitical backdrop remains highly uncertain.
Silver continues to be a critical industrial metal, and the structural supply/demand deficits in precious metals still matter.
What we’re seeing now is a healthy clearing out of weak new longs and speculative positioning that had become crowded.
These types of shakeouts, while painful in the short term, are often necessary for the market to consolidate, reset positioning, and ultimately work its way higher.
Major takeaway:
Violent corrections are part of bull markets.
The key question is whether this becomes a temporary cleansing event or the start of a deeper repricing. What are you watching most here: rates, crude, positioning, or geopolitics?
#Gold #Silver #PreciousMetals #Commodities #Markets Views are my own, for informational and educational purposes only, and not investment advice. #Gold #Silver #SLV #PreciousMetals #Commodities #Investing ”
