Monday, January 16, 2006
Gold and Silver
Here are hourly charts of February gold futures and March silver futures. The US markets are closed today so the charts only show pit and electronic trading through Friday's close.
Contrary to my expectation gold made a new contract high Friday. I think it will continue upward to 568 and then drop to the 470 level which is 1 and 7/8 times the 1999 low at 252.
Silver has stayed below is December high of 934 and is thus highlighting a likely rollover in the metals complex. I expect silver to take a brief peek above 934 and reach 940. Then I expect the market to drop to 750 which is 2 and 1/8 times the 1992 low at 351.
Looking further ahead I think gold and silver are making bull market tops here and that both markets will soon begin a decline lasting 1 to 2 years which will carry gold to 350 and silver to 500.