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Gold and silver popping

Commentaries & Views

As gold and silver consolidate in a range both appear to be attempting to breakout this morning which would set them up for more new highs. This is the pattern they are in: a big rally, settling back into a consolidation level at support and then a breakout to new highs.

This ties into the phases of the markets which are consolidation breakout and blow off which is exactly what we continue to see in gold and silver. The trend is up, the next run should take gold to $1,600 and silver to $19.00 for the next round of co4nsolidation.

Support in gold and silver have established themselves at solid levels, $1,525 gold and $18.10-$18.20 silver. Those levels should be used to be buyers. There appears to be no sell off in sight although we do expect pullbacks to support as we expect the rally to 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.