Loading ...Why We Don’t Want Gold & Silver To SPIKE Higher
As we have seen many times before, most recently on the first trading day of December, a spike higher in gold and silver prices brings action by the PPT and BIS to smack them back down by selling naked futures in whatever amount it takes to get the prices lower. This week has the potential for major moves higher in both metals. The key is that the rallies be slow, persistent without runaway spikes. We can have volatility as long as the up moves are slow and steady. I would like to see higher highs and higher lows each day this week. If that happens, with January closing out with both metals closing at new monthly higher highs than the Dec. closes, we could see breakouts next week. Slow and steady wins the race.
Agree CM
Gold itself looks great technically. Even silver has been holding up, although I do not like how much time it has spend basically riding the 200 WMA without advancing significantly–it’s a sign that it could roll over hard.
But the miners, they look pretty objectively terrible, like they are setting up a 2013-type waterfall.
My concern is if there is a recession and stock market decline, they are likely to crush the miners just like they did in 2000 and 2008. Heck even a correction in the stock market could see the miners take a whipping.
Your concerns are understandable but like you said about gold the technicals are positive. As to your point about silver I take the opposite view. The time under the mvg. avgs. should end up being a positive. I don’t believe I have ever seen a case where a golden cross was due to occur where it ended up being delayed for almost 4 weeks! A clear sign of heavy handed manipulation that looks to be over. We should know this week. I expect a huge move and breakout. After many false starts February should be spectacular especially for silver!