Gold Lost In Consolidation While Silver Breaking Out
The Fed reported on Wednesday,sending both gold and silver lower. The quick burst down quickly recovered, andgold has resumed the nasty consolidation period, while it appears silver isbreaking out to the upside.
Quietly silver has been chippingaway at the gold-silver ratio, coming down from 85 to 82. The action in themetals, although painful, has actually been more bullish than bearish. Bothhave held recent lows and have made higher lows.
Silver broke out of a majorresistance level and looks poised to continue to move higher. We expect bothgold and silver to continue to hold the bottoms and start to break to theupside. Waiting for the breakout to the upside will take patience anddiscipline. There will be plenty of time to get in.
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