Gold And Silver Thankful For Bull’s Perserverence
It was a red-letter day for Gold and Silver bulls as both metals, led primarily by Silver if one was watching the ticker closely, busted through their caps and put in powerful bull moves that pushed them far away from them and near their next important levels of overhead resistance.Â For Silver it was the move through $33 the other day that was the catalyst, setting the stage today along with the massive base it built all day yesterday between $33.30 and $33.40.Â Once $33.50 fell it was only a matter of time for Gold to follow, and follow it did by popping $12 in a heartbeat through the cap near $1735 per ounce and popping up to $1745.Â Silver closed over $34 for the first time in two months at $34.11.
By closing strong this week over these levels it sets both metals up to challenge their recent mid-September highs.Â For Silver the important level to watch now is $35.50. A monthly or weekly close over that level will see fireworks in December that few people are handicapping at this point.Â The same set up is in play for Gold at the $1800 price level.Â To get there there will have be strong move through both $1765 and $1775, both of which are in play for Monday after today’s close of $1752.05.
Moves like today’s are almost always followed through in Gold and Silver in today’s markets.Â The underlying demand for both metals is so strong that it takes multiple days of intervention to slow their advance once the breakout has occurred.Â This latest advance is taking off from the $1720 area not the $1525 area, giving it a much higher probability of finally putting $1800 in the rear view mirror for good.
In silver’s case, the weak miner’s earnings have finally dispelled the myth that Silver is cheap to produce with the companies having the strongest mine portfolios not making any money at these prices.Â On a production cost model alone silver should double from here before correcting.