Gold, Silver Prices Hold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Thursday was a wild day for gold as the clueless from the ECB spoke again. Whenever Super Mario opens his mouth, it creates market movement and Thursday was no different. The ECB made it clear policymakers will print more money, which in turn is just the destruction of the middle class.
Gold had a wild ride on Thursday, trading flat overnight until the ECB announced and then spiked $10 to resistance at $1,434 before failing making new lows on the day at $1,411. The final tally saw gold close at $1,414 with no technical damage. Nothing has changed as long as gold holds above $1,400-$1,410, and $1,500 is in play.
The pattern in silver was identical to gold and we would expect the same result going forward. For the last few days, silver has been stronger than gold. That may or may not continue, but one thing is for sure -- silver is headed higher. At $16.35, silver should hold, and a breakout above $16.70 breaks $18 into play.
The bottom line is simple -- both gold and silver look to be going higher. They should be bought on dips as the weak hands get shaken out on these quick sell-offs. Until further notice, prices should continue to rise.