Can the Rallies in Gold and Silver continue?
On Monday Gold and Silver rallied big, both closing right at a resistance level that should pause the rally. The big question is: Can the metals continue the rally and break out to the upside?
Obviously, there is no guarantee on whether or not the rally will continue. With both closing at resistance our expectations are to see a pause and more than likely a consolidation pattern to appear. The big rallies in gold and silver should continue after a period of congestion.
We remain bullish the metals expecting a run at the recent highs. However, we are expecting a small pullback from the first resistance, the action from this pullback will determine what the next move will be. The consolidation period should last a couple of days before the rally continues. We expect a test of 19.70 Silver and 1560 Gold