A Tale of Two Metals
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.