In this article, we’ll explore the anticipated paths of Gold, Silver and Oil, shedding light on their expected performance and the forces that may propel them forward.
Deeper than anticipated recession and Geopolitical risk premium
Gold: With targets that lean towards the conservative side, gold is gearing up for a significant ascent as recessionary clouds gather, particularly from 2026 onward. As the Federal Reserve wraps up its rate-cutting spree, gold’s allure will shine brighter, driven by inflationary pressures and geopolitical turmoil. The climb will be accentuated by the aftermath of rate cuts, creating a perfect storm for this precious metal. Historical patterns lean towards currency devaluation as Central banks flood markets with liquidity, and safe haven flows into gold as global risks heat up. Actionable trade plans and level by level action in the precious metal don’t miss our traders room here.
Undervalued Inflation Hedge, Silver ratio below 20 year average
Silver: Silver is feeling the heat, with upward pressure mounting. Targets are tantalizingly close, and if the stars align before 2027, we could witness a parabolic surge. Silver prices are rising due to robust industrial demand, a significant supply/demand imbalance and increased investor interest amid economic and political uncertainties. The momentum is building, as the precious metal complex is set for a large advance. It now takes about 86 ounces of silver to buy an ounce of gold — well above the 20-year average. Silver is an industrial metal due to its usage in solar panels and electronics, though like gold it can also serve as an inflation hedge.
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Political risk premium, Strategic Reserves and Strait of Hormuz risks path to $100
Oil: Oil is in the process of finding its footing, with a bottoming phase that could last anywhere from a week to six months. There’s no need to rush; high conviction remains that upper targets will be met. However, if prices slip below $45 on a sustained basis, we may need to reassess our outlook. Looking further ahead, a bold target of $200 looms, driven by dwindling investments in production infrastructure and rising costs. Recent conflict erupted in the middle east and U.S strategic reserve replenishment are keeping Oil bid amid OPEC+ supply increase plans. If you trade Oil you cannot miss our 6 week cycle ranges shared in the trading room here.
These forecasts, framed within a 36-month perspective, are designed to provide clarity as market conditions evolve. As the months roll on, the accuracy of these insights will become increasingly evident, offering a roadmap for Traders and Analysts to navigate the complexities of the financial landscape.
Trading in line with the bigger picture will set you apart as a trader. As the weeks and months roll on knowing where market is headed will bring much needed clarity and with clarity comes confidence. I share how I successfully trade larger trends with defined entries and exits to harness inevitable market moves. Get your access here.
Miad