When I look at these 2 charts, all the anxiety or doubt I may have as to what is really happening with gold and silver melts away and leaves a feeling of calm as to what the future really holds for those that are invested in the PM markets. The near term noise is distracting for some as it takes their eyes off the ball. The long term look puts things into perspective for you and paints a clearer picture of reality.
I used a monthly line chart to take out the spikes and to give a smother look to the chart. The support and resistance areas seem to show up better on a line chart making the breakouts easier to see. Gold is definitely leading the way here as its rally is more mature than silvers. The flag is projecting a price objective for gold to around the 1020 area.
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Silver on the other hand is just starting it’s bull run. We need to close the month of January above the top rail of the bullish rising wedge halfway pattern to confirm the breakout. The massive 20 year base for silver insures this bull market has a long ways to go yet before the party comes to an end.
All the best to everyone under the tent and patience is truly a virtue in this generational PM bull market…Rambus
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