The markets are panicked. In addition to the standard stocks such as DAX, Dow and Co, supposedly safe havens such as Bitcoin or gold are also breaking in. Silver is also deep red. There currently seems to be no stopping. All dams break. And yet: it doesn’t come as a surprise. Gold and silver still have downside potential in the short term.
In fact, the target area for gold as well as silver was hit today. Here, however, the precious metals should find a stop, otherwise the chart picture becomes more cloudy than feared. We are currently seeing a movement in which market participants are fleeing primarily in cash. And here especially in the US dollar. The US dollar can currently grow significantly against other currencies. The US dollar index rises by around one percent.
The mining stocks have already broken free from their opening lows. The mine indexes collapsed by more than ten percent right at the start of trading. Most stocks are now recovering a little – although gold is not yet showing a major countermovement. However, it remains to be seen whether the whole thing is more than a technical countermovement to the heavy losses that have accumulated in the past few days. In terms of charts, a swing low could develop. To do this, the mines would have to reduce most of their losses by the end of trading. So today’s trade can be crucial for the next few days and weeks.