We've had a very nice rally this morning, one that is extending as I type. Of course, this is very encouraging and gold, in fact, is building a very nice "stair" accumulation pattern on the shorter-term charts.
Everything looks positive as $85B/month of QE is confirmed for the foreseeable future. To that end, the metals appear to be coiling for a breakout move here. They look to be ready to extend toward the current downtrend lines that extend back toward the highs of early October last year. As you know, I've been calling for such a move for about the past 10 days and it's looking increasingly likely. For now, though, there are two key questions:
- Will this happen? As stated all week, these gains are nice but nothing of significance will have occurred until gold break $1626 and silver trades through $29.40. Will they do so soon? I think so but we'll see.
- What happens when the metals encounter those down trendlines? Will they roll over again as they did in November, January and February OR will they burst through and begin to establish some new, UP trendlines?
For now, getting back to question #1, can the metals break out of their recent ranges? Amazingly, silver has now spent 4 weeks between 28.40 and 29.40!
Have a great day. I hope to get things back to "normal" at TFMR very soon.