With 10% swings in opposite directions in the last two weeks precious metals have shown why they are not for the faint hearted investor. The anticipated MACD cross over occured in both gold and silver on Tuesday sparking a strong rally.
Silver in USD
Silver recovered all of last weeks drop with an 11% rally. Again the $10.60 level proved strong resistance with price dropping back to $10.27 by Fridays close. With four tests of the $10.60 level behind us and a weekly MACD cross over now in place I expect a break out for silver as soon as next week. As previously stated any break will be powerful. Expect a brief pause at $11.43 and a then a fast move to my year end target of $13.66. Major downside support remains at $8.93.
Silver in USD (Click on image for larger chart view)
Gold in USD
Gold gained about $70 or 9.3% for the week to settle at $822, right on the 50 day moving average. $830-$850 remains strong resistance but the technical set up remains extremely bullish for a break out as early as next week. With last weeks washout now behind us I remain committed to a target of around $1000 by year end. My expectation of a near 20% rally inside two weeks shows how bullish the technical set up is right now. On the downide $770 remains key support.
Gold in USD (Click on image for larger chart view)
Gold in AUD
In AUD terms gold held the key support level of $1168 and rallied to close at $1236, just above the 50 day moving average. whilst the technical set up for gold in AUD terms is less bullish than USD, I still expect $1400 gold by year end. Support remains $1226 (weak) and the $1168 (moderate).
Gold in AUD (Click on image for larger chart view)
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