Gold consolidates while Silver explodes
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Tuesday looked like the metal’s markets were going to explode higher. At one-point gold was up almost $30 trading almost $1,560 in the December futures. Gold settled at $1,556 and is now trading $1,548. For gold it’s the continuation of a consolidation pattern as it prepares to breakout to new highs once again.
On the other hand, silver continues to explode to the upside surpassing each of our target prices of $18.00 and then $19.00 per ounce. Today silver traded as high as $19.69 in the December futures. The gold/sliver ratio has fallen from 90-1 to 79-1, which we wrote about months ago. We expect the ratio to continue to narrow while gold and silver continue rallying.
Both gold and silver continue higher although in different patterns, gold in consolidation and silver moving up parabolically. We expect both metals to continue there moves higher targeting $1,600 gold and $20.00 silver. Look for both metals to consolidate before breaking out to the upside once again