Metals Getting Ready For A Big Move
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver are once again setting up for a big move as they sit in a consolidation range. The congestion pattern represents the time of most confusion for investors as markets reach the bottom of the range and bounce, and then reach the top end only to sell off. This pattern keeps investors and traders alike in a state of frustration.
Gold has been consolidating for six months while silver has been in this pattern for almost a year. As the consolidation narrows, the odds increase for a big move in either direction. Consolidation creates a combustible set-up, which leads to a big move in either direction.
The way the metals are set up now, gold should break out to the downside to $1,280, while silver should break out to the upside and test the mid-$17 level. The gold/silver ratio is 79-1 and continues to come in, heading to the next level of 70-1.