Elsewhere on this page, I’ve explained why the memorably nasty selloff in silver is unlikely to prove fatal. My reasons are technical, based on a recent rally spike that exceeded an ‘external’ peak recorded seven years ago. Price action in gold corroborates this with evidence that is not so esoteric. Specifically, last week’s spike to record highs exceeded a clear target on the weekly chart at 2031.30. Although there were other, higher targets that went unfulfilled, the December contract’s upside penetration of a Hidden Pivot resistance we can be certain of is indisputably bullish. The correction likely has farther to go, however, and we shouldn’t be surprised if it probes round-number support at 1800, or even 1700, before sellers are exhausted in perhaps 6-10 days. _______ UPDATE (Aug 13, 8:59 p.m. ET): The futures have been struggling for loft, but we can still use p=2008.90 shown in this chart as a minimum upside target for the near term. As always, a decisive push past a midpoint resistance, especially on first contact, would shorten the odds of a finishing stroke to D=2143.50.
GCZ20 – December Gold (Last:1965.80)