To no surprise to regular readers – gold bulls are on a rampage.
But how much higher on this run? I think $2,335 is a legitimate possibility before a real correction. The relative strength oscillator on the weekly chart below shows that bulls have plenty of fuel. I would be hard-pressed to sell before the indicator stretched into overbought territory.
What does that mean for silver? To me - the chart below indicates that a move to the top trendline and an upside breakout is highly probable.
The target for silver should the upside breakout occur, is 30 (for now). Note how bulls have maintained relative strength in an elevated position, with the indicator repeatedly failing to resolve all the way down. Now that momentum is turning back up, I think it will be extremely difficult for bears to stuff prices back down at the trendline again, as they did in December 2023.
Thank you and good luck.
