Gold, silver, painful but bullish
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
All week we have been writing about the pain of congestion; Thursday was the tip that, although consolidating, the trend is bullish. With gold and silver sitting in tight ranges and a couple of things have developed, higher lows and solid bounces off support.
Silver is slightly more bullish than gold right now and has a chance to break out to the upside today. If you look at a chart, you can clearly see the significant resistance level at $28.50. If silver can break above, we could be off to the races.
Although gold is in a similar pattern and is making higher lows, it also appears to be making a new resistance level at 1900. The same action applies to gold. If it can break above $1,900, gold can go a long way.
We remain long gold and silver; the trends are higher. Since we only trade the trend through our algorithms, we believe the rally and positive action will continue. We could be wrong, but because we are correct 66% of the time, we will stay long until the trend changes
Patience, discipline, and money management always win the day.
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