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Gold and silver rip higher, but will Powell spoil the party?

Commentaries & Views

Last week I commented that the weight of evidence suggested at least a short term low was in for the metals. I also suggested that gold was preparing to break out from the pennant formation.

That chart is updated below;

Silver’s run back up to the top of the range also looks to be underway.

Congrats if you pulled the trigger last week, under whipsaw conditions. The reward should be a profit going into the FOMC meeting today. Bulls should brace for volatility, but barring an intraday reversal, the game will be to hold on for the next gold target around $1965 and that all too familiar $24.20 level for spot silver.

Thanks and good luck.

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.