Markets continue to oscillate on news bits about the US economy, the war between Russia and Ukraine and events out of the middle east. With things like the war between Israel and Iran off the table (for now,) many of our customers are asking us what now. Now taking everything on an even playing field, there are still many things going on in the world, including the potential for a recession in North America. Just this morning there was a huge miss on the ADP nonfarm employment change for June, where it was expected to be an increase of 99,000, but the actual number was a decrease of 33,000.
We look at this market and its very important to highlight some of the support and resistance levels to try and give ourselves an edge. On Gold its very evident that there is strong support at $3,330 as the market has held there in the past couple days a few times. For the upside, resistance is firmly at the $3,350 level, a break above this could bring us to $3,370 and potentially $3,400. If we break to the downside at $3,330 we would test down to $3,310 then $3,300. On silver, we are seeing support at $33.20 and resistance at $33.70. We stated in our last update that a correction was possible as the market ran up fairly quickly, and this came true. All in all to answer our clients, it is still in our opinion, necessary to hold metals as part of a balance portfolio, as we see it more probable now that we have had a correction for there to be some more upside action.