(Kitco Commentary) – On March 6, I suggested a target for gold of about $2,335; I showed the below weekly chart, now updated with price action since then.
On that day, I wrote: “I would be hard-pressed to sell before the indicator stretched into overbought territory.” The indicator is now there, but that doesn’t mean the move is over just yet.
Turning attention to the daily gold chart: The indicator has room to push higher, and with that, so does the price, in my opinion. Note the triangle, which formed around the last FOMC meeting, with yet another upside resolution. I’ll be looking at how price and momentum correlate in this time frame as a queue for when I think the (inevitable and necessary) correction in gold is most likely to begin.
I suggested a target of $30 for silver back on March 6 as well; although that target is still a possibility, the probability of it being hit (on this run) has shrunk. With strong overhead resistance at $26 looming and momentum for this move increasingly likely to exhaust as price peaks, it may be a good time to reset timing expectations for a larger move in silver, to later this year.
Thanks and good luck,
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