Gold Resting; Silver Continues To Run
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold continues in its new consolidation pattern at higher levels. The new pattern being formed in gold is the same one we have seen since this rally has begun. Every big rally has seen a pullback to support before the next big explosion to the upside.
The action is very bullish and suggests a run to $1,500 is in the near future. The simple fact that gold is making higher lows and higher highs on each move indicates this rally still has room to run. Our algorithms indicate the same; we are buyers until the facts change.
Silver has once again pushed to a new yearly high, and this rally should continue. The only concern in silver is the speed and parabolic pattern that is being formed on this latest rally. Our next target in silver is $17, although we would expect a little pullback or sideways action before the next rally begins. We are buyers of dips in both gold and silver.