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Gold, silver hold; can they break higher?

Commentaries & Views

For the past couple of days, the metals have been trying to break support, which would send prices lower. However, support has proved to be very strong, allowing gold and silver to hold possibly make higher lows. This action could lead to higher prices.

It’s too early to confirm the new bottoms, but the price action certainly indicates that possibility. The path of least resistance does appear to be higher. As long as support continues to hold, we would expect the metals to bring in new money.

Market direction is always determined by price action, and the recent action in the metals indicates a greater chance of higher prices instead of a breakdown. There are never guarantees when it comes to the next big move; however, trading and investing is based on a probability model. For now, the probabilities suggest higher prices to come.

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.