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Gold In Consolidation

Commentaries & Views

Since peaking on Wednesday both gold and silver have been churning in consolidation. Rally attempts are met with sellers and sell offs are met with buyers. This is the congestion pattern which is simply a pause in the current uptrend.

Looking at the global economy, there are economic trouble and the central banks around the world are panicking. Their reaction has been to lower rates which is fueling the bond bubble. When central banks panic, they fuel the metals markets.

With Gold on 6-year highs and Silver on 1-year highs the natural reaction is to consolidate as they prepare for the next move. We are looking for the next mover to be higher based on the technical pattern, bond bubble and the action of the central banks. Gold at $1,600 and silver at $18.00 appear to be the next targets. We are buyers of support levels.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.