Gold spent the first week of December consolidating around $4,200. This helped it build up enough energy for a four-day rally, which took it back above $4,350. But it subsequently ran out of steam and was unable to make further upside progress.
Despite this, it has managed to hold its own, trading comfortably above $4,250 so far. Perhaps this marks another period of consolidation, albeit from a slightly higher starting level. If so, then it’s quite possible that the gold bulls attempt another assault on October’s all-time high of around $4,380.
But many are predicting a rally to $5,000 per ounce, or even higher. Anything is possible. But gold may need a longer period of consolidation, possibly at lower levels, for the MACD to pull back and reset to levels from which a substantial rally can begin.
Another day, another all-time high for silver? Not quite. Not yet, anyway. Yesterday, silver tacked on just under 4% to close at a record $66.32 per ounce. Even at these lofty heights, every pullback, however insignificant, has been met with fresh buying. But a look at a chart on a shorter timeframe shows that silver has been marking time and trading sideways ever since it hit its intra-day high yesterday afternoon.
Source: TN Trader
Could traders finally be wary of pushing prices up further? Or is this simply a much-needed breath-taking pause after silver’s terrific rally? Either interpretation is possible, but which is more likely? At the risk of sounding like a scratched record (remember them?), the daily MACD is significantly overbought. That would suggest approaching silver with great caution, whether a bull or a bear.
