What lies ahead for gold and silver? After gold pierces strong resistance at $1,750, the next stop according to technical analysis is $1,807 followed by $1,850 and then the all-time high reached last spring at $1,923. When $1,923 is left behind, gold should move into the $2,250 to $2,400 range (by the end of the year, or soon thereafter) and then it will have to deal with a correction that should send it back near $1,900 and will scare many people to the sidelines.
Silver is in a tight trading range bracketed by a tight trading range of $30.48 and $34.48. Once this range is overcome, the next stop will quickly be $36 to $38 or higher. It’s been a while since we’ve seen $38 silver. I remember it well as I sold some of my silver at $38 early last summer to fund the condo purchase in Miami.
Yesterday, Ranting Andy Hoffman posted an article from James McShirley of GATA. Here is an excerpt:
No doubt the cartel doesn’t want any explosions in silver before March op. ex. and FND. $1,750 and $34.50 are the current “do not exceed” figures. Time, and physical availability, will determine the next cartel retreat. All systems are go, no matter what interference the cartel runs.
According to Roger Wiegand, a New York bank purchased around $30 million in options that will only pay off if gold reaches the $2,200 – $2,400 range by this spring. They usually will not place a bet of this size without confidence that they will walk away with a profit.