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Metals well off the lows - what's next?

Commentaries & Views

On July 22 we wrote that “In this trader’s opinion, the weight of evidence is strong that metals either have, or are very close to beginning a sustained counter move to the relentless downside action” and posted the two following charts to show potential short term targets.

This morning those targets have been hit: Swing traders may already have locked in profit wehereas positional traders should be aware that the first pullback of the current move off the low could shake their belief that higher prices are yet to come.

On Wednesday, we showed the Gold to silver ratio breaking about above a key Fibonacci level and suggested that the catalysts we in place for a reversal; that has also transpired. The updated chart below shows the extent of the reversal, and suggests higher prices lie ahead for the metals in the medium term.

Thanks and have a great week,

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.