Tuesday looked like the metal’s markets were going to explode higher. At one-point gold was up almost 30.00 Dollars, trading almost 1360 in the December futures. Gold settled at 1556 and is now trading 1548. For gold it’s the continuation of a consolidation pattern as it prepares to breakout to new highs once again.
On the other hand, silver continues to explode to the upside, surpassing each of our target prices of 18.00 and then 19.00 dollars per ounce. Today silver traded as high as 19.69 in the December futures. The Gold Sliver ratio has fallen from 90-1 to 79-1 which we wrote about months ago. We expect that ratio to continue to narrow while expecting gold and silver to continue rallying.
Both gold and silver continue higher, although in different patterns, gold in consolidation and silver moving up parabolically. We expect both metals to continue their moves higher, targeting 1600 gold and 20.00 silver. Look for both metals to consolidate before breaking out to the upside once again.