The gold price (futures) has taken out resistance #1 at 1675 and is trying to take out 1700 as well. The next objective is around 1750.
Aside from that, it is making a move to take out the SMA 50 (blue) and to the probable excitement of pattern watchers, it is breaking upward from a falling wedge. If the seasonal is here early we can watch for a potential drive up to 1800 and the now downsloping SMA 200. That would not be a bad seasonal move.
The silver price (futures) is already ramming the downtrending SMA 200 as it contemplates the old 22 resistance area that sent it on its most recent drop to test major support. I think silver can be a forward guide not only as it has been for the Q4-Q1 seasonal, but also for a more extended precious metals run – including the possibility of bull market resumption. Of course a failure to take out 22 could also work the other (bearish) way for leadership.
So as we’ve been doing for months, let’s pay attention to silver. (The Gold/Silver ratio continues to break down and that is leading USD down). A hard correction in those two would likely coincide with strong relief most everywhere else.
