Gold – We are at a very important juncture with respect to Gold. Since the market crash in 2008 Gold has been in a solid uptrend and spent a good portion of the last 9 months tracing out a cup and handle pattern.
Within the cup and handle pattern is an equally impressive wedge pattern. Given the overbought technical indicators in the short-term charts we may see a bit of a pullback here with 1185 as a bottom but we are likely to see buyers jump in around the 50 day moving average at 1210.
The second Gold chart speaks for itself as to where we have come from, the trend channel, and where we are headed.
Investors should keep a sharp eye on the Gold chart ready to allocate capital as this buying opportunity emerges.
Silver – The short-term charts for Silver are overbought and we are likely to see a bit of a correction here before the next move higher to test the 2008 highs around $21. We have had a nice run from the 2008 lows and have spent the better portion of a year making a base to prepare for the next move higher.
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