Gold, Silver and HUI
Without belaboring the potential vulnerabilies that would be any relief from war angst or the FOMC coming up on March 16th, let’s do the straight technical situation, sans the noise.
Let’s use daily charts while recalling how bullish gold is and has been on its big picture monthly view. HUI has also been bullish on its monthly view from a different perspective; that of an index far below its highs.
Gold is through the gateway again. That is the 1920 level, which is the trigger to new highs and one day out on the horizon, the 3000+ target. The daily pattern, if it holds above 1920 would target a test of the previous high above 2000 in the interim.
Silver is kissing a key resistance level right now. Recall that in a previous update we noted that the 26 area needs to be taken out and held to keep the rally going. If it were to break through, a reasonable measured target would be 30 and a test of the cycle highs, much like for gold above (at 2000). Watch the 26 area for silver!
HUI is targeting the important resistance at 325. Recall that is our bull gateway to a big picture target of 500 (+/-). With crude oil/CRB rocketing higher in relation to gold, gold mining sector fundamentals are not good yet. But with gold rising well vs. stock markets, what I call the macro or psychological funda are doing very well. All the more reason to let charts guide in the short-term.
For now, given all the noise in the background (incl. FOMC upcoming), let’s see if these items can hit the interim targets of 2000+ for gold, 30 for silver and 325 for HUI. I would think that silver’s status at clear resistance could be telling as to whether that will be able to happen any time soon. Personally, I have a hunch these targets may well happen soon.
But my hunch and whatever a cup of coffee costs these days will get you a cup of coffee. Hopefully, however, the above will give some good perspective on the situation.