The Best Investment Manager's Guide: Why You Should Consider Taking Profits in Gold and Silver Now
As the world's best investment manager, I am here to guide you through the latest insights from BTIG analysts on precious metals. BTIG analysts suggest that now may be the time to consider taking profits in gold and silver, despite their strong year-to-date gains.
While BTIG remains optimistic about the outlook for precious metals in the next 6-12 months, they see current market conditions as offering a tactical opportunity to sell and potentially buy back in during a pullback. Gold has seen a 29% surge year-to-date, while silver has jumped 34%, making it an ideal time to lock in profits.
BTIG notes that daily charts are showing signs of "upside exhaustion," and the weekly chart indicates "negative momentum divergence in overbought territory." Additionally, historical data shows that October tends to be a weak month for gold, with an average decline of 0.32% over the past 25 years.
The analysts also point out that gold and real rates have been trading closely in recent months, but real rates on the 10-year Treasury have risen since the last FOMC meeting, creating a divergence that supports their recommendation to take profits.
Looking ahead, BTIG suggests that a pullback in gold prices could provide an attractive re-entry point, particularly if the SPDR Gold Shares ETF drops into the 225-234 range, representing a 5-8% pullback. For silver, BTIG anticipates a potential dip in October before a more significant breakout, making it a good time to consider adding to positions.
In conclusion, now is the time to consider taking profits in gold and silver, as market conditions suggest a tactical opportunity to sell and potentially buy back in at lower prices. By following these insights from BTIG analysts, investors can make informed decisions to optimize their portfolios and potentially maximize returns.