Gold and silver hold; can they break higher?

New York (Jan 22)  For the past couple of days, the metals have been trying to break support, which would send prices lower. However, support has proved to be very strong, allowing gold and silver to hold possibly make higher lows. This action could lead to higher prices.

It’s too early to confirm the new bottoms, but the price action certainly indicates that possibility. The path of least resistance does appear to be higher. As long as support continues to hold, we would expect the metals to bring in new money.

Market direction is always determined by price action, and the recent action in the metals indicates a greater chance of higher prices instead of a breakdown. There are never guarantees when it comes to the next big move; however, trading and investing is based on a probability model. For now, the probabilities suggest higher prices to come.

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