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Silver Breaking Out; Gold Finds Higher Low

Commentaries & Views

Silver is finally breaking out of the consolidation patter it has struggled with for months. On Wednesday, silver popped almost 3% on the biggest volume day in months. The rally continues today and should continue to run to $17.50-$17.75.

Gold seems to have found a higher low once again but still has not been able to break out to the upside. As we have written for the past few weeks, gold must break above $1,365 and close above for a breakout. For now, gold is still in consolidation and should be observed.

Silver is proving to be the leader; the gold silver ratio has come down from 82 to 78 and should continue to fall. With the current patterns, we would still be a seller of gold and a buyer of silver. Even if gold breaks out to the upside, we expect silver to outperform gold

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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