This week we will analyze gold and silver, and we will find that both metals are at a very interesting inflection point. Let’s start with the price of silver: it just closed the quarter at $31.14, its highest close in 12 years and its fifth highest quarterly close ever! Silver is up about 65% from its quarterly low set in 2022 and shows few signs of slowing down. The next target to watch is its all-time high quarterly close at $37.58, and if it manages to surpass it, there is virtually no resistance above this level.
From a broader perspective, I remind you that silver’s current move appears to be an attempt to complete the handle formation of a handle cup pattern that dates back to the 1980 high, with measured movement over a quarterly close around $140. The future of silver over the next few years looks incredibly bright.
The price of gold reached a historic resistance line this week connecting its 1980 and 2011 highs, so it is not surprising that the price has rebounded to the $2,665 area and may consolidate for a while. We now have what seems to me to be a very convincing model of a cup with an inclined handle. However, for those who prefer a more classic approach to technical analysis, I suggest considering the huge bull flag that dates back to 2010. The movement measured on this flag is around $8,000, and it would appear that a breaking the neck line of the cup with handle would give a huge boost to the price in that direction. Indeed, now is a good time to be a metals bull!
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The information contained in this article is purely informative and does not constitute investment advice, nor a recommendation to buy or sell.
