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Gold Pulls Back To Support

Commentaries & Views

After breaking out on Thursday and making new six-year highs, gold pulled back to support and is slightly higher this morning. The small sell-off was perfectly natural in a market that wants to go higher, leaving us no reason to believe that gold is not headed towards $1,500.

At the same time, silver appears to be headed higher. After a four-day rally taking silver to one-year highs, we expect to see some consolidation before the rally continues here as well. Silver is appears ready to come out from its dormant stage and looks to be going much higher.

The metals should continue to break out to the upside with periods of consolidation and the occasional sell-off. Until something changes, all dips to support should be bought. The levels should be $16 in silver and $1,420 in gold.

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