Tuesday, January 31, 2006
Gold and Silver
Here are updated hourly charts showing pit trading in April gold and March silver.
Both these markets have been stronger than I anticipated, but I still think the next big move will be downward. Nonetheless, both close above resistance that I cited in this morning's guesstimate so I have to conclude that there is still more left on the upside.
April gold's key level for me is 573 ( the corresponding level in the February contract was 568) and since the market closed above there I now expect a move to about 600 before any substantial break begins. A close back below 573 tomorrow would switch me back to a short term bearish view.
March silver closed visibly above 979 resistance so I think the market is headed for 1023, just a little above resistance at the 2 7/8 multiple of the 351 low in 1992.