Gold, silver, FOMC and volatility

(Kitco Commentary) - The gold price has been consolidating in a flag since printing its latest all-time high - as shown in a 4-hour timeframe in the chart below.

I expect a period of volatility tomorrow as of 2 PM EST. During this time, the price would most likely break through the top or bottom side of the flag. A daily close below the bottom line could mean a more meaningful correction is about to take place. A daily close to the upside would signal that there is yet another leg up for the bulls, in my opinion.

Although I continue to give bulls the benefit of the doubt, the weekly chart below shows where the price might find support should a correction occur. Until proven otherwise, I would view dips as buying opportunities – especially for stackers of physical metal.

Silver bulls have encountered resistance at $25.50. As with gold, my opinion remains bullish till proven otherwise, with the $26 target just overhead. That said, extra vigilance is required as a move down to $23ish, occurring in tandem with a correction in gold, presents as a clear possibility here.

Thanks, and good luck.