Credit: Flickr / Marco Vernch / CC-BY 2.0

The spectacular gains reported last year in the context of precious metals, gold and silver, have apparently affected people’s expectations, as most of those gains have now been reportedly given up. In the context of the near term, the test support for the white precious metal- silver is set at $16 and that of gold at $1200.

Meanwhile, the Fed has set a course of quarterly rate increases, which is faster than economic growth. This is considered a formula for stagflation and recession, and when this happens, investors who are holding on to gold and silver investments are considered to do well.

The main beneficiaries of Trump’s policies have been the US dollar and equities. The boosting of equities have been attributed to the promised tax cuts, immigration bans and repealing of Obamacare. Yet, there is an expectation of finding a rounded top on the markets, including a rounded bottom in precious metals after the summer.

Experts have analysed and examined the relationships between the equities, the dollar, and precious metals. Very few of the Wall Street investors have an interest in precious metals. With the turning of the market, sophisticated investors would reportedly pick up some insurance in the form of silver and gold. The white precious metal would continue to make gains, and eventually, the target would be multiples of the current prices. One can expect to see a move up in the fourth quarter of this year, in the precious metals, gold and silver.

Meanwhile, the reasons behind the stock being at apt support levels are being evaluated. The market is set with rising prices, and the focus seems to be on building the construction at the El Compas and Terronera projects in Mexico.