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Gold Consolidating, Next Price Move Is Higher

Commentaries & Views

As we look at the recent action in gold and silver, it’s obvious not much has changed. The metals continue to churn in a range holding support every time support is tested. This is also known as the torture of congestion, the toughest pattern to trade.

From our standpoint nothing has changed. The pattern suggests the next big move is higher. As long as the lows hold, the gold rally will continue. Typically, in this pattern there are a lot of false starts in both directions.

The bulls are still firmly in control, but they do run out of steam at the top end of the range. As the bulls and bears change places, the bottom line is simple. After each move, the metals markets have made higher highs and higher lows. For now, we are buyers of both gold and silver at support and see no reason the rally won’t continue.

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.