Why New Highs in Gold and Silver Depend on Oil Prices in 2024? This Is What to Watch – Jim Wyckoff

Explore the critical connection between oil prices and the precious metals market in this Kitco News interview. Jeremy Szafron sits down with Jim Wyckoff, Kitco’s Technical Senior Analyst, to discuss how oil’s trajectory could significantly influence gold and silver prices in 2024. Wyckoff delves into the complexities of global economic trends, the impact of central bank policies, and geopolitical factors shaping the future of these commodities.

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0:00 – Introduction and Overview
1:03 – Fed’s Influence on Gold and Silver
2:57 – Bullish Outlook on Gold Prices
4:23 – Impact of US Dollar Index on Gold
6:18 – China’s Economic Influence
7:13 – Geopolitical Tensions and Gold Prices
8:09 – Price Projections for Gold
9:33 – Economic Drivers for Silver
11:25 – Oil Prices’ Impact on Metals
13:50 – Technical Analysis of Precious Metals
16:12 – Wyckoff’s 2024 Market Predictions
17:09 – Closing Remarks and Future Outlook

#GoldAndSilver #CommoditiesMarket #OilPrices #FinancialAnalysis #KitcoNews #JimWyckoff #MarketTrends #InvestingTips #EconomicOutlook #economy #fed
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Kco news Outlook 2024 is brought to you by I trust Capital buy and sell crypto gold and silver with your IRA hey everyone I’m Jeremy saffron and this is Kiko news now today we focus on the precious metals Market exploring the distinct trends of gold and silver with central banks around the world

Navigating inflationary challenges and geopolitical uncertainties looming gold and silver remain key assets for investors and joining us is Jim wof Kiko’s technical senior analyst to provide expert insight into the current trends and the future prospects of the markets Jim thanks for joining us well thank you Jeremy and welcome to kco I

Appreciate it I was saying to the crew and and to you it’s it’s like I go to bed and I see your name on your reports and when I wake up it’s the same in my inbox so it’s almost as though I know you so listen let’s uh let’s focus a

Little a little bit on gold here now we’ve seen the price remaining steady around the 2025 Mark recently I’m curious if you can elaborate a little bit though on the economic and political factors currently influencing those gold prices sure Jeremy well the overriding factor the past uh oh the past week has

Been the uh surprisingly doish stance taken by the US Federal Reserve at last week’s fomc meeting that was a significantly bullish element for the uh gold and silver markets also the raw commodity markets uh it put some risk on back into the general Marketplace what it suggests is that uh with us lowering

Interest rates the major economies of the world are probably going to likely do the same or at least pause on hiking rates uh that that augures for more demand better demand for gold and silver and other raw Commodities because uh businesses and consumers are not having to dealing with high higher interest

Rates higher borrowing costs yeah you know I mentioned that some of the uh some of the officials from the FED have been kind of backpedaling a little bit about all this enthusiasm towards rate Cuts I’m curious were you surprised by this latest data that we

Saw yeah I was uh I was surprised by the FC results I mean the marketplace had fully expected what we call a uh a hawkish pause whereby they left interest rates unchanged but sounded their rhetoric sounded hawkish well they had a pause but the uh the Fed was doish on

Their monetary policy and that uh immediately rallied the gold and silver markets as well as the stock market uh treasury yields fell uh so it was a a bullish all-around scenario for many markets yeah you know I’m curious I mean you you remain bullish on gold and I

Want to talk a little bit about that because the predictions of gold prices remain strong obviously into 2024 so I’m curious though is investors look for some insight here how do investors adjust their strategy in light of your projections well uh I’ve been saying for quite some time that uh you know

Commodity markets are highly cyclical it’s it’s it doesn’t take a rocket scientist to look at a long-term chart and say that you know gold and other markets go through periods of boom and bust well we’re in kind of a boom cycle right now in the gold market we just hit

A record high a few weeks ago um the path of lease resist resistance in a price uptrend is sideways to higher and I think that’s going to continue to be the case the fact that the fed or had some easier monetary policy rhetoric only added to the bullish uh uh fuel

That is probably going to propel gold and silver prices higher here uh in the coming months now over the near term we may see some choppy and sideways uh trading but longer term I’m bullish gold and silver and uh look for even higher prices than the record high scored

Recently in Gold I look for silver to in 2024 potentially reach $30 an hour wow wow $30 before I pivot into go into silver because I have quite a bit to discuss here I’m curious here you know we talked a little bit about the FED there their standpoint and how they’re

Fairly doish I want to get into the intricacies of how this in affects gold prices explain that to the audience a little bit and maybe what it might signal for the future Market movements yeah sure uh on a daily basis generally the gold market trades in an inverse fashion with

US dollar Index when the FED came out with its uh doish R rhetoric last week the US dollar Index automatically sold off real you know sharply and and saw follow through selling the next couple of days and hit a 4.5 month low last week that uh immediately was a bullish

Element for the gold market uh from that perspective but also as I mentioned the easier monetary policies of the policy of the Federal Reserve and possibly of the European Central Bank and other central banks that means there’s going to be better consumer confidence better consumer confidence because of lower

Borrowing cost means better consumer demand for raw Commodities including the metals markets the outlier or the uh flying the ointment may be in the coming months if China’s economy continues to uh list and and show further economic weakness like it has the past uh few months we we’ll have to see how that

Goes but if China’s economy uh gets in some serious trouble the property sector already uh is is in some trouble that China’s got some debt problems if their economies lists further then that could be the element that uh you know prevents gold from uh trending significantly

Higher yeah we just said China inject a little bit of stimulus into their economy as to when do you see the effect of this kind of playing out well the markets are always Front Runners so when those announcements are made even though the effect of the easing of monetary policy may not come

For a while down the road the markets automatically sense that that announcement is uh going to have a certain impact at a certain date and and factor that into market prices so it’s it’s pretty immediate when China makes these announcement or makes these moves of course you got to see what the the

Real data is down the road but markets do a pretty good job of factoring in expected uh economic developments once they’re announced yeah I mean unfortunately we live in a world where we see a lot of major geopolitical tensions and shifts that was no you know

We saw a lot of that this year uh maybe some potentially this year and I’m curious if we do see some economic shifts or some geopolitical problems here what impact is that usually have on the price of gold well let’s talk geopolitics first we’ve got a couple of uh developments or

A couple things going on we’ve got the Russia Ukraine war we’ve got the Israel Hamas War um the Russia Ukraine war is kind of dragged on for quite some time now but there there’s always the chance that there could be a surprise escalation that would drive safe haven

Demand for gold same way with the Israel Israeli Hamas War there’s uh there may be another shoe to drop there there could be involvement with the US just uh this week the Red Sea shipping lanes have been uh impacted and and chips ships are avoiding those that lane

Because of the houthi missile attack so those are all elements that that could escalate quickly and drive uh better safe haven demand for gold and that would push prices sharply higher in a hurry probably to new record highs same goes with silver silver is going to follow okay so with gold having trading

Significantly over 2,000 for a significant period in most of 2023 uh what are your thoughts on this price base uh what’s the future trajectory here well the path of lease resistance as I said is sideways to high I’m going look at my chart right now uh you know

We we’ve got to get above 2100 that is the chart resistance on the near-term basis then we’ve got the all-time high of 21 just above 2150 so those are the near term resistance levels but if we give get above uh 2150 then uh bigger price gains are possible in a shorter

Period of time and and uh you know but again gold is cyclical you know if we do hit a new record high uh we could see prices correct back over a period of weeks or months you know back down to the you know 2000 level before embarking

On a maybe a future uptrend so all one has to do is look at a long-term commodity chart long-term gold market gold chart and see that uh the prices are volatile and they have been and are going to continue to be so is the Buy on the crash strategy in light of those

Predictions is that still accurate here is that still the approach well we call it in the industry we buy the dips uh so yes right now the the Market’s in a bullish technical posture any price pullbacks and gold are viewed as as buying the dip or buying opportunities bargain buying opportunities by bullish

Traders so that’s that that’s likely going to continue to be the case yeah let’s switch over here a little bit Jim to uh to Silver as we know silver markets often operate under different influences compared to Gold what are some of the key economic drivers for

Silver right now and how do they differ from gold well actually gold and silver tend to trade in tandem they they do they do follow uh the same fundamentals because silver is a poor man’s gold uh when when gold starts to Rally silver can uh follow along sometimes silver will lead

Silver is a more important industrial medal arguably than gold so uh in better Economic Times uh economic growth times that silver May outpace Gold but generally they track each other silver is still a a safe haven investment but on on days when there’s Keen geopolitical an uncertainty in the

Marketplace the the silver market tends to underperform and gold gold outperforms yeah you know we just had last week the CEO of Wheat and precious metals on the show Randy Smallwood and he was talking about how his opinion has kind of pivoted a little bit from silver or

Excuse me from gold into silver he thinks silver will take over for 2024 and you were just mentioning the role in the industrial use here uh in your view what role will that play and are consumer is consumer demand for silver uh is that going to be pretty pretty

High this year I would suspect well I’m not an expert on the supp Ling demand uh the specific uh uses and and demand from uh from industry for silver I’m more of a price and and charts guy and and macro fundamentals guy but um generally speaking stronger economies are going to

Mean stronger demand for silver and other raw Commodities so as we look at these likely easier monetary policies uh for the central banks in 2024 that’s going to that’s going to funnel into uh better demand for uh for silver and also uh the other the other metals markets

And raw Commodities one thing we need to keep a close eye on Jeremy in the weeks and months is the trajectory of the crude oil market crude oil is uh the leader of the raw commodity sector crude oil prices right now are trending down if crude oil prices continue to Trend

Down in the coming weeks and months that’s not my bias but if they do then rallies in most commod ities are going to be limited including the metals market so we’ve got to see uh crude oil prices stabilize and start to Trend sideways to higher and my bias is that

Will be the case uh in the coming uh weeks or few months uh we’ve got to see crude oil rebound and starts to Trend higher again if we’re going to see some sustained uh price strength and and solid rallies in the Raw Commodities including the metals yeah you know I’m

Curious on the oil side what’s been pushing that I mean you just mentioned we got the Red Sea problems there’s some tankers that are avoiding the area we got OPEC we got this Russia crisis uh talk a little bit about what’s happening on the oil side of things well the main

Thing impacting oil right now or the past few weeks has been the US has then been pumping a near record amount of crude oil and uh that that’s I’m not saying it’s flooded the market but it certainly has depressed prices uh the Red Sea situation or the Middle East

Situation is may be a bullish Wild Card however you know surprisingly the early October Hamas rate on Israel and the and the you know the shock that that created for at least a while really didn’t do a whole lot of lasting uh bullish impact for the gold or for the crude oil market

So actually crude oil prices have been trending lower the past few weeks so uh we we need to watch that situation closely Russia is going to be a big player they’re they’re they’ve got some sanctions against them but uh they they they appear to be avoiding them and

Still putting H crude oil out onto the World Market yeah yeah and the us as well trying to fill up those tanks again uh let’s talk a little bit and shift over to the technical indicators like the 14-day RSI uh how do you anticipate these will behave for the precious

Metals sector in the upcoming year well I don’t uh I follow price trend price trend is my Paramount indicator and and I think most uh industry veterans look at the price trend either on a daily chart a weekly chart or a monthly chart and that’s their best determinant of of where

Prices are going to go now if you’re a shorter term Trader uh an active day trader or you know trade several times a week you’re going to want to look at those indicators those oscillators like the RSI and the stochastics but for the longer term for the for the Buy and Hold

Guys you’re going to want to look at those uh charts and and determined price trend so heading into the new year we’ve got gold prices in a in a solid uptrend on on The Daily the weekly and the monthly charts same goes with silver so uh those are bullish elements technical

Elements that augur for uh the speculators the chart-based guys uh continuing to play the long side of gold and silver in the coming weeks and months yeah and I mean longterm it looks pretty good I’m curious you talked a little bit about those short-term traders that you know a little bit of a

Different play here but in the context of price movements in Market volatility how should investors be hedging against the risk how do investors manage that right now well there’s several ways to hedge risk you can do it with options you can uh uh you know have have spread

Strategies but uh speaking of shorter term Traders um I think a lot of our KidCo readers have uh been reading or looking at I put out a daily price item that has a five minute bar chart on gold and and gives daily buy and sell signals

Uh for the more active Traders on uh on on the on that five minute chart it’ll have a line that says buy and a line that says sell basically it’s a uh when when gold pushes above a a short-term resistance level that’s a buy signal drops below a short-term support level

That’s a sell signal and it’s been working working pretty good here the past uh uh few months yeah you know I’m curious though looking at an outlook for 2024 this first 6 months into it Jim uh what’s some guidance here what could what should we be telling our viewers and our

Readers well you got to keep watching the Federal Reserve uh the central banks uh you know the old saying you don’t fight the FED we’re gonna we’re going to be watching inflation uh inflation has cooled globally the past several months if that continues to be the case central banks

Are going to be able to lean easy that’s going to loosen up the financial system with more liquidity and that’s that’s that’s going to be bullish for the raw Commodities it’s going to be bullish for the stock market uh the the Bugaboo could be uh that that throws water on a

On my bullish scenario could be a an unexpected Resurgence of inflation uh or like I said maybe the Chinese economy get getting into a more serious situation with its debt problems so inflation and uh China uh could be uh bearish elements uh in in in 2024 we’ll

Just have to see how that plays out yeah absolutely and we will be seeing how that plays out and hopefully have you on much much more Jim thanks for joining us today all right Jeremy thank you thank you so much and thanks again to our viewers for joining us for more please

Download our kick code app and don’t forget to subscribe to our YouTube channel for the latest I’m Jeremy saffr and we’ll see you next time kco news Outlook 2024 is brought to you by it trust Capital buy and sell crypto gold and silver with your IRA