The current tout for December Gold spotlights a very important rally target at 1137.50 that engendered a mildly encouraging bounce during Wednesday’s regular session. There are, however, no such encouragements to be found in Silver’s charts. All signs point lower — possibly much lower — and although some of the lesser charts allow for a dead-cat bounce from here or there, the daily chart (see inset) suggests that a Hidden Pivot at 13.769 may be the best that bulls can hope for over the near term. Numerous bounces off the 19.317 midpoint are sufficiently exact to lend authority to the target, which in purely visual terms looks unavoidable.
There is of course no possibility that Gold’s so-far fragile low will survive if Silver is about to take a 10% header. I am not going to attempt to reconcile the two simply because one or the other will decide the matter for us, and soon. Traders should plan on bottom-fishing at the target, just as they should already be long from Gold’s recent low. But extra caution should obtain, since, considering the weight of the evidence in Silver’s chart, the burden of proof remains on bulls.