Gold, Silver Preparing For Blastoff
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.