In my newest Gold & Silver market update, I discuss the short-term technicals on the precious metals and what they reveal as a possible trend over the next several weeks. Both gold and silver are setting up into some interesting triangle technical formations. While silver is forming a weekly symmetrical triangle, gold on the daily chart is behaving more like a descending triangle.
However, this is just the short-term technicals, not the mid-longer term fundamentals, which continue to get stronger every day. Unless we see the U.S. government provide a new stimulus package, we will likely continue to see a precious metals consolidation. Although the insanity taking place in the Presidential Election and aftermath, it’s difficult to determine short price moves as the news coming from the media is way too volatile on the markets.
For example, when Pfizer announced the positive vaccine news last week, the gold price lost nearly $100 in a day while silver fell more than $2.00. So, it’s impossible to provide trends when politics and media are causing havoc in the markets.
That being said, the technicals still provide clues about the direction of the precious metals and copper. I provided some updated charts on the copper price, which is a major indicator of the global economy’s health. I believe the copper price is setting up for a correction lower in the next few weeks.