Chart Hurdles Cleared; Gold, Silver Bulls Can Now Stretch Their Legs
(Kitco News) - Gold prices at mid-week have powered to a six-year high, while silver has pushed to a 13-month high. What were technical chart resistance barriers on the charts have been eclipsed, giving the bulls even more power. An examination of the longer-term monthly continuation charts for nearby Comex gold and silver futures reveals there is much more upside price potential for the metals--and especially silver.
For gold, see on the monthly chart how previous years' highs dating back to 2013 have been cleared with the price action of the past three months. Technical resistance on the monthly chart does not show up until around the $1,685 level. So that's the next upside price objective for the powerful gold market bulls. Above that lies longer-term chart resistance at the $1,800.00 area. For the gold market bulls to be seriously dinged on a longer-term technical basis, prices would have to drop below chart support at $1,300.
The monthly chart for silver is even more compelling for the bulls. Longer-term technical resistance resides at $18.00 and then at $18.60. Those speed bumps seem within reach in the not-too-distant future. Above them lies resistance at the 2016 high of $20.82, which if cleared opens up massive upside price potential to $25.00, $30.00, or above. Just eight years ago nearby silver futures prices notched a high of $49.52.