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Metals: Room to run

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

To follow up on yesterday’s piece:

Silver broke out to the flat side of the triangle; triangles like to break to the flat side. Silver is shown again below on the 4-hour timeframe. Yesterday I noted how momentum was turning up, as the price was preparing to break out. Now it looks like there is still quite some room for momentum to fulfill its natural upward path, along with price.

Note how the price back tested the breakout, as I suggested gold was doing on the daily timeframe, just yesterday morning,

Another look at gold on the daily timeframe below:

The breakout looks successful and bulls have the momentum with lots of room to push forward, in my opinion. A test of $2075 spot on the next leg up would not surprise me.

Thank you and good luck.

By

Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
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.