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Can the rallies in gold and silver continue?

Commentaries & Views

On Monday gold and silver rallied big, both closing right at a resistance level that should pause the rally. The big question is: Can the metals continue the rally and break out to the upside?

Obviously, there is no guarantee on whether or not the rally will continue. With both closing at resistance our expectations are to see a pause and more than likely a consolidation pattern to appear. The big rallies in gold and silver should continue after a period of congestion.

We remain bullish the metals expecting a run at the recent highs. However, we are expecting a small pullback from the first resistance, the action from this pullback will determine what the next move will be. The consolidation period should last a couple of days before the rally continues. We expect a test of $19.70 silver and $1,560 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.

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