Silver thus far holds the key support area of 26 to 27.50. The moving averages are up-trending nicely and so the picture is still bullish.
Gold is on the outs because we are in the midst of an inflationary greed fest. Targeted support is and has been the low-mid 1700s. But when adding in a channel line let’s not discount the potential for quick spike below into the 1600s. The red shaded towers of doom illustrate why so many bugs cry foul. Breakouts magically reversed in an instant.
Gold is not ready yet. It’s as simple as that. Gold is the thing you hold to retain value, not to create profits. The miners leverage that steadiness and turn it into dynamic upside under the right conditions. We are in a classic sanitizing of the gold “community” and this will be proved one day to have been a very healthy process with the longer-term target for gold unchanged at 2790 based on the monthly chart’s Cup & Handle. This angst ridden decline IS the Handle.
Let gold lumber through its correction and keep an eye on silver, which continues to be bullish in comparison, 100% in line with the inflationary backdrop.