Gold reaching resistance, Silver Consolidates
As we continue to watch these patterns in metals develop, Gold is reaching a resistance level which will tell us if it will test the highs made two weeks ago. Silver continues to languish in consolidation and lagging the action seen in gold.
One thing we have learned after 40 years trading markets is price is everything and nothing else matters. The price action in gold is telling us that there is a reasonable chance that the yellow metal has a high probability of reaching the recent highs. The simple fact that our signals never reversed displays underlying strength.
On the other hand, silvers price action indicates that it can still go either way. Comparing the price action in both tells us silver has probably peaked for now and will more than likely test the bottom end of the range. The correlation in bit gold and silver are separating, we know that at some point the relationship will come back together but for now it appears higher gold and flat to lower silver.