(Kitco News) - The market is already veering towards a recession, but stock markets are not responding accordingly, this according to Todd “Bubba” Horwitz of BubbaTrading.com.
“I think, we’re in the early stages of a recession,” Horwitz told Kitco News. “Cheap money continues to fuel the markets.”
Gold and silver will both eventually move much higher, but in the short-term, metals will follow their trajectory, meaning gold will move higher and silver will lag, Horwitz said.
“Right now, silver is in a short-term downtrend…both gold and silver spiked to highs and since then, they’ve both come down. The difference is gold found some support around $1,560 April futures but is holding, and silver is continuing that downward trajectory,” he said.
Horwitz added that once the gold-silver widens, it would present a good opportunity for traders to buy silver.
“I think gold, I’m looking for $1,600 first, but I’m pretty confident that the $1,630 high that was made on that spike high will be taken out and then that will probably be a near-term top here,” he said.
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