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Gold, Silver Preparing For Blastoff

Commentaries & Views

The metals are doing the big churn, which means they are rotating around the mean trying to escape and make a much bigger move. This is very common in any market that is preparing to break out in one direction or the other.

Based on market history and the footprint being left in the chart, the next big move should be higher. Remember -- the charts are like a roadmap. The money and the trades leave a mark, better known as a footprint, which gives traders a guideline on which way the market will move next.

The current footprint shows underlying strength in gold and silver, which should bring new money buyers in on every dip in the market. This is the pattern we have been watching for the last five months. There is no reason to expect a change until the footprint and the map change.

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.