There is now a quite widely held conviction that following its major breakout and strong runup, silver will need to correct back further than it has thus far to ease its overbought condition, but the evidence that we are going to consider today suggests that it will do the opposite, and take off higher again.
How silver trades over the next week will set a significant trend for the next month. A close above the key level means silver continues to consolidate, and a close above could set up another move towards $30. Since silver reached $30 a few weeks ago, it has been consolidating, which is a typical pattern after a significant breakout.
With Silver Eagle demand continuing to be RED HOT, the U.S. Mint sold another million of the coins yesterday. This is the biggest one-day sales increase in six months. It seems as if the U.S. Mint is now able to ramp up production of both Gold and Silver Eagles.
Gold and silver investors got quite a scare this week. As there were several sharp sell-offs.
But the prices also rebounded, and to find out what’s really going on, quick to watch this gold and silver update with Dave Kranzler of Investment Research Dynamics!
For anyone who wondered whether there would be a correction in the gold and silver markets, they got the answer on Tuesday. As the silver price dropped over $4 at one point, while gold was down over $100.
Is it a bubble that’s popping? Or is it just a correction?
While the indicators last week suggested a higher silver price this week, it looks like the overdue correction has finally begun. We shouldn’t be surprised to see a correction in the silver price as it doubled in less than three months. However, it does seem as if the corrections are much more extreme… as the last gains over the past five days have now been erased today.