Silver Breaking Out; Gold Finds Higher Low
Silver is finally breaking out ofthe consolidation patter it has struggled with for months. On Wednesday, silverpopped almost 3% on the biggest volume day in months. The rally continues todayand should continue to run to $17.50-$17.75.
Gold seems to have found a higherlow once again but still has not been able to break out to the upside. As wehave written for the past few weeks, gold must break above $1,365 and closeabove for a breakout. For now, gold is still in consolidation and should beobserved.
Silver is proving to be theleader; the gold silver ratio has come down from 82 to 78 and should continueto fall. With the current patterns, we would still be a seller of gold and abuyer of silver. Even if gold breaks out to the upside, we expect silver tooutperform gold
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