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Gold at support, silver mid-range

Commentaries & Views

After China infused $174 billion on Sunday night, equities popped higher gold and silver were under pressure all day. This morning, equities are exploding higher again; gold is under pressure and silver is slightly higher. Looking at the pattern, gold looks to be a buy, while silver is mid-range.

Not much has really changed in the metals. Gold looks like it wants to test the highs and silver to test the lows. The gold silver ratio is 89-1, looking like its headed back to the 90s before there is a reversal. We are still looking for higher gold, lower silver.

The big picture is simple; the patterns are clear. The trend for gold is higher, and the trend for silver is lower. For now, we buy dips in gold and sell rallies in silver. We would expect gold to test the recent highs in April futures of $1,613. Silver looks to test the lows.

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.