Gold and Silver: Fundamentally Strong but Technically Stretched

Technical Analysis of Gold and Silver

This analysis attempts to look at different metrics to understand the current momentum in the gold and silver markets. It is meant as an analysis on potential price direction in the very short-term (a few weeks to 1-2 months).

The last two technical analysis pieces have been spot on. The first one in September identified a bullish trend and despite massive moves concluded that “the market still looks very healthy but might be due for another consolidation period before attempting $4000 gold and $50 silver”. The market kept going and took out both but quickly retreated.

In October, the conclusion was “we need to cool off, but there is no speculative bubble that is ready to pop”. That was published the day before the market sold off and went through the last correction.