Credit: Flickr / Mark Herpel / CC-BY 2.0
After almost three weeks of downward-and-sideways price action for both white and yellow precious metals, experts believe that both metals have set up another breakout/rally attempt. The attempt is observed after breaching downward resistance.
The attempt may pose a huge opportunity for precious metal traders as the next move higher could prompt a rally above recent highs. That implies target price levels in Gold above $2100 and Silver above $30.50.
The price retracements recently in the precious metals have come from news events. The first news snippet was from the EU Banking Report that destroyed the market on September 21. The next was President Trump contracted COVID-19. The resilience in Gold and Silver metals with the recent lows spells demand for them is still skyrocketing. Experts suggest that otherwise there would have been much deeper price lows. Furthermore, according to sources, the current basing pattern could be the start of an explosive upside appreciation phase in precious metals.
Gold
Gold is expected to rally levels near 1995. The metal would stall a bit before breaking clear of the $2085 level and driving well above the $2150 with a new rally phase beginning. At this point, experts suggest that there could be an upside move to break the resistance channel, which is the key to starting the upside price recovery.
Silver
The setup in the white precious metal is quite similar. The downward sloping price channel is comprehensible. Price is quite close to breaking above this channel. Experts suggest that the next move in Silver would be a rally to levels near $28, and stalling briefly pushing Silver above $31.50. The appreciation phase is suggested as a much longer-term price appreciation cycle in metals that should begin within the next six months and may last over two years.
When reviewing the Daily charts, the appreciation phase could last 7 to 15 days, and not two years. Still, experts believe the result is that Gold and Silver are ready to start moving much higher at this point.
Metals have been incredible opportunities for skilled technical traders. Repeating cycles and patterns allow skilled traders to pick from multiple triggers and making 2020 incredible for both traders and investors.