Revisiting precious metals

Disclaimer: Nothing in this post or any other post should be construed as personal investment advice.  If you want investment advice, hire a financial advisor.

 

Several months ago, when gold was over 5000 and silver was over 100, I mentioned here on this blog that the metals had gotten too pricey for me.  I wasn't jumping on the bandwagon.  

All I know is that the precious metals are not cheap right now, and I won't be buying any time soon.  Oil is cheap, and a few other things are "cheap enough," but I'm not jumping on the gold/silver bandwagon. 

https://jefftanyard.blogspot.com/2026/01/1005000.html

In fact, the charts had gone parabolic, suggesting a pullback was imminent just as soon as bullish momentum died off.  And, in fact, that's what happened.

Gold got a buzz cut, falling by about ten percent, and silver's barber missed the hair completely and outright decapitated it with a wild thirty percent crash. 

https://jefftanyard.blogspot.com/2026/02/gold-and-silver-get-haircuts.html

I attempted to identify support lines in order to get an idea of where the PMs might bottom out before starting the next leg up.  

For gold, I identified support at 4079.64, 3610, and 3140.36.  Here's what gold has done recently:

 

As you can see, it basically hovered around that first support line for several weeks before spiking up in recent days.  Is the recent spike a bullish breakout?  I don't know.  It might be too early to tell.  This Hormuz business has created too much uncertainty.  But the chart is encouraging for bulls.

Now let's look at silver.  I identified support at 81.46, 69.25, and 57.04.  Here's the recent chart:

 

 

Silver blew right past the first Fibonacci line without any hesitation.  In June, it did the same thing with the second line.  But the third one seems to have held.  Silver bounced around that support line for several weeks just as gold did with its line.  And then, also like gold, it spiked up recently.  Again, I don't know if it's a breakout or not, but the chart is encouraging for bulls.

So gold seems to have found support at the 61.8% retracement level, and silver seems to have found support at the 38.2% retracement level.  Emphasis on "seems," because we can't count out the possibility of a Fed rate hike in September, and that would shake everything up.  And, of course, the Hormuz situation is a constant annoyance for folks trying to make sense of financial markets, and there's no telling when or how it will conclude.

I bought some shares of a mining stock last Friday.  Not much.  Just dipping my toes in the water.  But I'm watching the PMs with renewed interest now.