Gold, Silver Breaking Out
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After months of consolidating, torturing traders and investors alike, gold and silver appear ready to break out to the upside. Gold is trading at its highest level in six weeks and a close at this level would be the highest close in five months. Silver is trading at five-week highs and although not as strong as gold, it looks ready to trade much higher
As we have written for months, the consolidation pattern has been a challenge for gold and silver. We maintained a bullish posture and now look to be rewarded for our patience. The key levels to watch are $1,240 on gold, which should now become support, and $14.70 in silver, which is resistance.
With all of the concerns about the Fed, strong dollar and other issues, both metals have quietly been grinding higher and look to make moves to $1,275 gold and $15 for silver. These levels are the key to the next big move and from our view, they continue to go higher.