In last Wednesday’s gold update, I noted the likelihood of a November fund and a pending breach of precious metals. Gold is breaking bullish, confirming that outlook and the potential for a $ 2300 advance. Silver and platinum trends are even more optimistic and could explode further.
GOLD DAILY
The daily gold chart clearly broke above the intermediate trend line, confirming the break in the cycle and the subsequent 6-month low in late November. Precious metals are expected to rise at least until March, but April or May are more likely before being corrected for the next 6-month low. My minimum target for this advance is $ 2,300.
SILVER DAILY
Silver is also confirming a break in the cycle. The upward divergence at the end of November (prices remained above the September high) suggests a robust dynamic behind silver’s move towards this advance. Consequently, I think prices could go up a lot more in the next 3 to 4 months. I have a minimum goal of $ 35.00, but $ 42.00 or more is a real possibility in April or May.
PLATINUM DAILY
Platinum diverged even more bullishly than silver, creating the potential for a powerful breakthrough. In late November, when gold fell to new lows, platinum reached new highs. Once over $ 1200, we could easily see $ 1500 + in April or May. Historically, the price of platinum has traded well above the price of gold, so we have a lot to update.
Georgia Senate Update
The race for the Georgia Senate was tight for almost a coin flip, compared with 68% to 35% reported last Tuesday. If Democrats win both seats (currently 49% likely), that will change things from a divided government to a united government. The Dems, if in control, would increase spending and stimuli, but with that comes the potential for higher taxes, which corporations hate. If they win, I suspect that the likelihood of higher taxes may be sufficient to trigger a correction in the shares.
In addition, several senators said they would contest President Trump’s electoral defeat when Congress meets on Wednesday. This opens the door to an investigation into allegations of electoral fraud. It is unclear how this will play out, but if there is a genuine investigation, then it can also cause uncertainty in the market and a possible correction.
Silver and Platinum are leaders in gold and are expected to surpass gold in 2021. Our portfolio of educational metals is long GDXJ, SILJ, GDX.
AG Thorson is a registered CMT and expert in technical analysis. He believes that we are in the final stages of a global debt super cycle. It posts daily updates to premium members. For more information, visit here.