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Gold, silver prices churning

Commentaries & Views

We have seen this movie before. Gold and silver are churning around in consolidation as they try and decide which way they will go next. A case can be made to go either way, but for now, there is more evidence that the lean is to the upside.

The fact that the metals never gave us a sell signal based on our algorithms suggests they want to go higher. During Monday’s overnight trade, we saw a spike higher, with April gold to $1,575 and March silver to $18.15 before both pulled back.

The path of least resistance once again looks to be higher; the algorithms remain long as do we. The key support levels to watch are $17.80 in March silver and $1,545 in April gold. As long as they maintain those levels or higher, we will be playing the market to the long side. They can go either way as always, but the path of least resistance appears to be up.

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.