Gold Lost In Consolidation While Silver Breaking Out
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The Fed reported on Wednesday, sending both gold and silver lower. The quick burst down quickly recovered, and gold has resumed the nasty consolidation period, while it appears silver is breaking out to the upside.
Quietly silver has been chipping away at the gold-silver ratio, coming down from 85 to 82. The action in the metals, although painful, has actually been more bullish than bearish. Both have held recent lows and have made higher lows.
Silver broke out of a major resistance level and looks poised to continue to move higher. We expect both gold and silver to continue to hold the bottoms and start to break to the upside. Waiting for the breakout to the upside will take patience and discipline. There will be plenty of time to get in.