The Best Time to Take Profits in Gold and Silver According to BTIG Analysts
BTIG analysts have advised investors to consider locking in profits in precious metals, such as gold and silver, following significant gains so far this year. Despite their positive outlook on precious metals in the next 6-12 months, BTIG sees the current market conditions as a tactical opportunity to sell and potentially buy back later at a lower price.
Gold has seen a 29% increase year-to-date, while silver has surged by 34%, making it an opportune moment to secure profits, as suggested by BTIG. They believe that the charts are indicating signs of "upside exhaustion" on a daily basis and "negative momentum divergence in overbought territory" on a weekly basis.
Historically, October has been a weak month for gold, with an average decline of 0.32% over the past 25 years. BTIG also highlighted the close correlation between gold and real rates (inverted) in recent months but noted a divergence since the last FOMC meeting, with real rates on the 10-year Treasury increasing while gold prices rallied.
BTIG recommends waiting for a pullback in gold prices, particularly if the SPDR Gold Shares ETF (NYSE:) drops into the 225-234 range, representing a potential 5-8% decrease. As for silver, BTIG anticipates a dip in October before a possible breakout, advising investors to consider adding to their positions at that time.
Overall, considering the current market conditions and historical trends, taking profits in gold and silver at this point could provide an opportunity to re-enter at lower prices in the future, potentially maximizing returns in the long run.