The Technicals: A Needed Consolidation has Gotten a Bit Uglier

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).

In Q4, the technical analysis was strongly calling for a pullback or at least a consolidation period. The price indicators were quite bearish. The call may have been early by a few weeks but was an essential step if the bull market in both metals was going to continue.

The market received that pullback, consolidating around $5,000 and $80 and has since broken down below both consolidation zones. Looking at the data below, the data is very mixed. The latest pullback will delay the next phase in the bull market, but even the next short-term move is cloudy.