A weekend look at the Precious metals charts

Lets take stock over the weekend and see where we are up to in Gold and Silver.

Gold:

Gold still remains in a uptrend which seems to be accelerating as it progresses. This could be setting up for a major and fast rise once it breaks through the strong resistance zone at around $1360. Once that is broken we should see the big moves in gold starting. That means big up moves as well as big down moves as the price rises and corrects in waves. However the general trend should be up which will be marked out by higher highs and lower lows. Look out for a quick move to $1400 once $1360 is broken. Gold looked weaker than silver last week little damage was done. Silver really just needed to catch up to gold as it has been lagging golds sustained rally.

Silver:

Silver had a good week as it broke out of it's consolidation zone last week, however there is more work to be done as it then hit stronger consolidation at around $17.22. Both silver and gold now need a break out before they can progress. Silver continues to build a large wedge formation and sits on the cusp of another break out. We might see a pull back in the week ahead before another attempt at breaking out.
In my opinion what we are seeing is increased upward pressure and suppressed momentum on prices as more new buyers enter the market at the same time speculators build short positions. At some point pressure will overcome the sellers and resistance will be broken. This will result in a surge of buying as even more new buyers move in with increased confidence that the price will move a lot higher, and shorts rush to cover their losses.

Silver/Gold ratio

I won't recreate the Bullion by post chart but you can find it here:
https://www.bullionbypost.co.uk/price-ratio/gold/silver/year/
As you can see by the chart, silvers big move last week resulted in a large drop in the ratio, pushing it back below 80/1. Will the trend continue? We might see a small bounce as both metals correct, but I think with 80/1 being broken we are now heading down in the ratio. That means higher gold pricers and even higher silver prices.

Bottom line

Both metals have hit strong resistance, but this has been the 8th time gold has hit the same resistance zone. This demonstrates golds persistence at attempting to break through and its just a matter of time before it succeeds. You can literally see the upward pressure building in the gold chart as consolidations become more concentrated.

For disclosure, I'm not a professional financial advisor and this is not investment advice, merely my own observations of the market and indexes, so do your own research.