Gold and silver have traded sideways, not far above their late-September plunge lows, for more than two weeks. These trading ranges might appear very narrow, but the daily charts make clear that volatility has increased recently in these markets. Yesterday’s trading did not alter our forecast, in which both metals probably need to take another significant stab to the downside before the bullish all-clear signal can be sounded. Yesterday gold narrowly made a new rebound high, and the subsequent selloff and partial recovery gives us an active bullish pattern that aims as high as 1714.50. That level can be shorted with a stop at 1715.10. Above there we have a midpoint pivot at 1756.30, mentioned yesterday, which is part of a very large pattern. A decline to 1615.60 would confirm a pattern that is not quite as large but which gives us a target all the way down at 1402.30. In the event of another new rebound high, these numbers will also move up. (Posted by Doug “harry” McLagan)
