Has gold hit bottom? Famous strategist issues latest warning: Don't rush to buy the dip, silver is the real indicator
24K99 News – With the US and Iran peace agreement boosting market sentiment, gold and silver made a strong rebound this week. However, as many investors began to discuss whether precious metals have bottomed out, MarketGauge Chief Market Strategist Michele Schneider advised caution.
In an interview with Kitco News, she stated that last week’s sharp selloff in gold may have marked a critical turning point, but the market has not yet shown sufficient technical confirmation signals. Therefore, it is still too early to determine that a bottom has been established.
"The decline on June 11 may be a key reversal, but we haven’t seen any confirmation signals yet," Schneider said.
She explained that a reliable bottom usually requires continued follow-through buying, not just a brief rebound driven by short covering. Ideally, after a reversal, gold should consolidate solidly or break the previous session’s high with significant volume, demonstrating that new funds are flowing into the market.
Silver Is More Worth Watching Than Gold
In Schneider’s view, silver—not gold—is truly worth investors’ attention at the moment.
While gold has fallen below several key technical support levels, including the 50-day, 200-day, and 50-week moving averages, silver has shown significantly more resilience overall.
She pointed out that although silver also fell below certain moving averages on its daily chart, from the longer-term weekly perspective, it has remained solidly above the 50-week moving average.
"Silver’s performance might determine the direction of the entire precious metals sector next," she said.
Schneider believes that if silver visibly outperforms gold again, it often indicates that market expectations for future inflation are heating up. At the same time, silver is both a precious metal and an industrial metal, widely used in artificial intelligence, solar energy, and advanced manufacturing, meaning future demand still has growth potential.
Waller Becomes a Key Figure to Watch
Besides technical factors, Schneider believes this week’s Federal Reserve meeting is also crucial.
The market is still assessing how the new Chair Waller will view future monetary policy, so she suggests that investors at least wait until the Fed meeting concludes before judging whether this rebound is sustainable.
"If I currently have no position at all, I would continue to observe," she said.
"I’m not only looking at today’s close—I want to see how the market performs this week and after the Fed meeting as well."
She believes that if there is continuous price rise on high volume in the coming trading days, it indicates that investors are gradually embracing new expectations for future rates and the US dollar, and it also means the long-term bullish logic for precious metals is regaining market recognition.
The Long-Term Bullish Case Remains Unchanged
Although remaining cautious in the short term, Schneider emphasized that her long-term view on gold and silver has not changed.
She stated that global geopolitical uncertainty, expanding government debt, elevated inflationary pressure, and the ongoing increase in gold reserves by central banks remain crucial factors supporting precious metals.
Notably, the People’s Bank of China continued to increase its gold holdings in May, marking one of the largest single-month increments since the end of 2024, once again demonstrating that official demand for gold allocation remains strong.
At the same time, large-scale global investments in building out artificial intelligence infrastructure could become another new source of inflation in the future.
"All of this means more funds will need to be allocated," she said.
"From a long-term perspective, the fundamentals of precious metals have actually grown more important."
However, as far as the current market is concerned, she still recommends that investors be patient.
"Rather than guessing where the bottom is, it’s better to wait for market confirmation," Schneider said.
"You can start with a small position, and gradually add more as prices break back above key moving averages."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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