'The Sky Is The Limit' For Gold And Silver
The markets are climbing to new heights, and commodities are hanging on for the ride. Gold and silver futures are have soared over the past year. Brexit included, KODEX Gold Futures(H) (KRX: 132030) are trading up a little over 4 percent over the past month, whereas KODEX Silver Futures(H) (KRX: 144600) are trading up around 17 percent over the past month.
Furthermore, other gold and silver stocks and ETFs are likewise experiencing an upward trend:
Abraham Trading Company's Salem Abraham joined Wednesday's PreMarket Prep to give his bullish outlook for the gold and silver markets.
Abraham noted that gold and silver are two things on which his company is most confident. "Gold and silver are our most exciting positions. We've been long gold and silver for a couple months now, and as they've flowed back and forth but they continue to run up this year," he said. "We think with the strength they've shown what you find is a market that can defy gravity."
Abraham added that his models have been quite bullish on the two commodities as well. "We have models from one-week outlook out to up to four months, and what's interesting to me as a technical trader is that all those (models) agree to gold and silver, and that's pretty rare," he said. "From a technical perspective you have a lot of opinions that say, ‘Hey these markets are going higher.'"
Abraham further commented that gold and silver may be the safest plays in an increasingly risky market. "I think in a market environment where there's a global pushback it seems like, prudent fiscal policies across the globe from a political standpoint, there's a lot of uncertainty," he said. "When you've got a currency that basically interest rates are so low to negative — which is crazy — it's as crazy as it gets for paper money. I think that's the real attraction of gold and silver right now."
Major markets are soaring, and Salem Abraham has a very positive position on where gold and futures are headed in the future.
"The sky's the limit for markets like that."
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