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Gold and Silver breaking out, Platinum breaking down

Commentaries & Views

The story in gold remains the same: prices appear to be headed much higher. The breakout from consolidation about a week ago continues to hold; support has not failed yet. Gold is forming a cup and handle pattern, which indicates a much bigger move is coming. We expect that move will be higher and gold should break through $1,800 August futures as it prepares to make a run at the all-time highs.

Silver is setting up a similar pattern to gold, just not quite as bullish but with the possibilities of breaking out big. The key for silver is a close above $18.20 September futures, which would probably take the metal to $20. Of course, there is work to be done, but silver is bullish. It would be no surprise to see soon silver start to outperform gold.

After rallying the last couple of days, platinum looks ready to head lower once again. The high for this move would be $840 October futures, which would keep platinum in a downtrend. Our first target on the way down $800 support that breaks $770 and then $750 October futures.

Our algorithms have been dead on the charts, which keeps us long gold, silver, and short platinum. All three appear to be solid patterns and should see a continuation in their current direction.
Saturday Micro Mini Recording: Saturday did a great webinar on our micro mini futures portfolio models. I have attached the recording for your viewing pleasure.

Mini Micro Futures Portfolio Management Recording

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.