Analytical Charts - Jim Wyckoff
Gold Tries to Rally but Stalls
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Thursday, gold was under pressure, but it did make an attempt to rally. Gold did get positive for a few minutes before closely marginally lower for the day. The action is exactly what we called for, which should lead a period of consolidation.
The action in gold and silver is bullish and should lead to much higher prices although a period of consolidation would make the pattern more bullish. The straight rally from Wednesday needs to resolve itself by pulling back.Gold should see a sell off to support at $1,500 before resuming the rally. We are expecting a run to the 1600 level and possibly higher. Silver should pullback to 1650 before taking a run at 18. We expect the next move in Silver to be bigger than the rally in Gold to reduce the ration between the two.