We've had a very nice rally this morning, one that is extending as I type. Of course, this is very encouraging and gold, in fact, is building a very nice "stair" accumulation pattern on the shorter-term charts.
Everything looks positive as $85B/month of QE is confirmed for the foreseeable future. To that end, the metals appear to be coiling for a breakout move here. They look to be ready to extend toward the current downtrend lines that extend back toward the highs of early October last year. As you know, I've been calling for such a move for about the past 10 days and it's looking increasingly likely. For now, though, there are two key questions:
- Will this happen? As stated all week, these gains are nice but nothing of significance will have occurred until gold break $1626 and silver trades through $29.40. Will they do so soon? I think so but we'll see.
- What happens when the metals encounter those down trendlines? Will they roll over again as they did in November, January and February OR will they burst through and begin to establish some new, UP trendlines?
For now, getting back to question #1, can the metals break out of their recent ranges? Amazingly, silver has now spent 4 weeks between 28.40 and 29.40!
Have a great day. I hope to get things back to "normal" at TFMR very soon.
TF
12:30 pm EDT UPDATE:
Obviously, the site is back up...for now. We will be making some decisions later today regarding our current servers and other issues. I'll keep you posted through this site (if it's up) or through the blogspot site https://tfmetalsreport.blogspot.com/
Silver and gold continue to struggle at these levels, as you can see below. Will silver simply fall back under $29 again tomorrow, as it did back on the 12th? Probably but let's not give up hope just yet.
TF
