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Gold and silver breakout

Commentaries & Views

Tuesday was quite the day, both gold and silver broke out to new closing highs and show no signs of weakening. Although they pulled back a little late in the day, the close was nicely higher and silver closed on 2-year highs.

Both gold and silver look very strong and show no signs of weakening. The march higher should continue especially considering the global meltdown through the world economies. The uncertainty and uneasiness about rates and other factors are putting a floor under the metals.

Put the big rally together with the bond bubble and you have the perfect storm for gold to make a run to $1,600 and silver now ready for a run to $19.00. Our $18.00 target on silver was hit Tuesday, indicating there is a lot more underlying strength in this market. We are buyers at 18.00 silver and 1530 gold.

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.