The initial rally out of a 6-month low can be nerve-racking…this time was no different. Gold’s entered a gentle climb higher after striking the November 12th low. It wasn’t until Christmas eve when prices finally verified a cyclical breakout.
Gold’s Breakout Confirmed
Gold confirmed a 6-month low on Christmas eve when prices closed decisively above the cycle trendline. The initial breakout surge is slowing, and we are entering the mid-cycle correction. Ideal support arrives between $1520 – $1540. Once complete, gold should continue to fresh highs.
Massive Potential in Silver
I’ve explained before how silver often lags gold at the beginning of a trend but takes the lead near the end. I think that’s happening again – silver prices should soar throughout the next advance.
Note: Silver diverged from gold and touched met fresh lows in December. The recent breakout is incredibly fresh, and a pullback here would offer an excellent, medium-term entry.
Silver Daily Chart
Silver spiked to $18.90, and it too appears to be entering a mid-cycle correction. Ideal support appears between $17.30 – $17.80 with the potential for a backtest of the cycle break line. Once complete, silver should resume the uptrend and exceed $20.00 in March.
In summary, precious metals and miners are heading into their mid-cycle corrections. After a brief pause, prices should resume their uptrends. I see considerable potential in silver and plan to add leverage as prices correct.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/
This article was originally posted on FX Empire
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