Gold resting; silver running
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The strength in metals continues: gold is at 6-year highs and silver is now at 2-year highs. There appears to be no stopping the run higher. The rallies have been epic and show no signs of slowing down.
Gold has now gone into consolidation at the highs which is the perfect pattern relieving the overbought conditions. This appears to be a pause in a market that wants to continue running. Our target of $1,600 looks to be very close and it would be no surprise to see that level hit in the next week or two,
Silver is a little different because this is the initial breakout and is moving at a parabolic speed. Silver is closing the ratio between gold from a high of 92 gold over silver to 83. We expect the ratio to continue to close the gap however silver should take a rest soon and consolidate before the next move higher. Our next target in silver is $19.00.