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A Tale of Two Metals

Commentaries & Views

Just a week ago, gold appeared on the verge of breaking out to the upside and traded as high as $1,369, making higher highs and higher lows. Out of nowhere, gold has reversed and is making lower highs and lower lows, also known as the torture of a consolidating market.

On the other hand, silver has broken out to the upside and has one more hurdle to pass before it will be considered in an uptrend. With silver trading just north of $17, there appears to be a clear path to $17.70 and higher.

This is the tale of two metals -- one in the best of times and one in the worst of times. For now, gold should be sold at resistance and silver should be bought at support. This is only a temporary separation and the metals will join forces again, but the picture is clear. Until we meet again.

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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