Gold and Silver breaking out while Platinum remains in consolidation

New York (May 15)  Gold and silver have started to break out of the tight ranges they were in. Silver broke out above $16 in the July futures and is continuing this morning. Gold is now above $1,730 in the June futures, confirming the next resistance at $1,775.

The action in gold has been strong despite the apparent seller in gold that has shown up almost every day for the past couple of weeks. There now appears to be a chance for gold to go over $1,800. The negative action in gold is gone. As we have written all week, the action was turning more bullish and should continue.

Silver and platinum were in identical patterns for weeks, but silver has now broken out and looks headed to our next target of $17 basis the July futures. Platinum should break through $800 in the July futures and then to $850.

We remain long across the board and look for these rallies to continue. All three had almost identical patterns this week, helping them hold support and start this rally. As we know, markets never announce themselves. We know that the pattern can change, but for now it looks like full steam ahead.

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Reuters