GoldSeek Radio Nugget - Steve Rocco: Metals Face Short-Term Weakness

Steve Rocco, of the Rocco Report, returns with Video-Charting on all the key market indexes, including Gold, Silver, Crude Oil, Bitcoin and US Stock Bourses.

- Steve updates his forecast on the black-gold market, crude oil.
- Oil is holding above support, that could precipitate if a recession unfolds in 2024.
- The technical outlook suggests bargain prices could be seen.
- On Spot-ETF news, Bitcoin nearly touched $50k this week.
- Will Bitcoin be a buying opportunity and if so, at what price?
- Gold is holding above $2,000 - will this be the year the bulls run to $2,500?

When we had the breakout above $2,000, we saw that huge move up to $2,130 in Asian market trading and then it came all the way back down. When you look at the commercial net short positions for gold and silver, they're elevated – they're not at their highs but they're not anywhere near their lows and typically when the commercial net short position for gold is at a high, the price is at a high and when it's at a low, the prices is at a low.

If you look right in October, when gold hit a low, we saw the the drawdown in the commercial net short position. If we're heading into a weakness, which I believe we are, economic; we're going to see more unemployment, we're going to see more people get laid off, earnings are going to disappoint.

What that usually means is we're going to see a downturn in in the markets and that typically also brings down the metals and energy. It's just the way it us. 

I do believe unless we have a made of a major geopolitical event which we saw a little bit today, the metals took off but they came back down...or another banking crisis; we're probably we're probably going to say the metals and energy and commodities continue to roll over into weakness.

Now, once that I think the markets can continue to decline but then the metals will turn around just like they did in October 2008 – the markets continued falling down for another six months but the metals started going higher.

He continues:

So that's kind of what I see over the next several quarters, and then they're going to start lowering rates and then we could see QE [quantitative easing] as the economy really starts to roll over and that's when I think we're going to start seeing much higher gold and silver prices. But yeah, I think we may see weakness first.

- The cost of production is near $1,650 for gold, $21-$22 for silver; our guest thinks this is key support.
- The technical position of silver is impressive - one deep pocketed investor like E. Musk could send it soaring: Optimus Prime, Tesla, SpaceX, Photovoltaics, Industrial Battery production to name a few projects.
- Once silver closes above $30, the sky could be the limit.
- Global monetary expansion and national debt has soared, while the global population nearly doubled since the last time silver was at $50 - could silver overshoot the target substantially?
- Does the lack of interest in younger generations for gold and silver suggest an asymmetrical risk-to-reward, opportunity?
- When unemployment rate starts to increase, does this metric impact US shares?

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