Since peaking on Wednesday both gold and silver have been churning in consolidation. Rally attempts are met with sellers and sell offs are met with buyers. This is the congestion pattern which is simply a pause in the current uptrend.
Looking at the global economy there is economic trouble and the central banks around the world are panicking. Their reaction has been to lower rates which is fueling the bond bubble. When central banks panic, they fuel the metals markets.
With Gold on 6-year highs and Silver on 1-year highs the natural reaction is to consolidate as they prepare for the next move. We are looking for the next mover to be higher based on the technical pattern, Bond bubble and the action of the central banks, 1600 gold and 18.00 silver appear to be the next targets. We are buyers of support levels.