Gold and silver, injured but still in the game

As we witness yet another mauling in the gold and silver market it's worth taking a step back and looking at the bigger picture.

Gold:

We can see here that the correction today is still within the range of the consolidating bull flag that continues to form, although it is getting a bit stretched now and needs to break out. We might even see a fall to around $1308 as it hits the bottom of the flag and bounces back. The strong uptrend is still very much intact and the resistance zone is not yet broken despite repeated attempts. This too is bullish because the price wants to go higher but breaking resistance is proving difficult. Once broken, which I think will occur soon, it should result in a powerful upsurge as the built up energy of the past few months is released.

Silver:

Silver is having an equally challenging day but just look at the energy building up in the large wedge formation that has been building for months. Indeed, silver has really been consolidating since mid-2016 and should mirror gold with an equally powerful breakout once it occurs.

In general both metals are building up energy for another push higher, but there is still the possibility of a major smash down in price which would put a wet sponge on the early forming bull market, possibly for another year or two. However, I don't think this is the case. All of the signals appear to be suggesting the the pent up energy in the metals is to the upside and a breakout will occur soon, possibly in May. As I am writing we are already starting to see a bounce back so it will be interesting to see where we end the day.

Ratio

The ratio is back over 80/1 after dipping below it slightly when silver bounced last week. There is now huge downward pressure on the ratio (upward pressure on the metals) as 80/1 is generally a signal that price has got out of whack with reality and needs to correct back to normality. It usually does so hard and fast, although it may linger in the range for a bit longer.

Fundamentals

Peace in the world is a real possibility as North Korea looks to end their 60 year war with the South. The war, which began in 1950, was never officially declared over by a peace treaty and, in theory, the North has always been at war with the South, even though aggression ceased in 1954. This is potentially a big deal for the world as a unified north and south would send a huge and positive symbolic signal of world peace, not that dissimilar to the fall of the Berlin wall. As far as metals prices go, world peace does not generally support higher prices, but it is positive for humanity in general. Personally, I'd rather see a slower increase in metals and world peace than all out war which just results in death, destruction and misery. Having said that, with everything else going on in the world I don't actually think the Korea situation will adversely affect the metals anyway. We still have historically massive debts and an escalating situation in the middle east, which could get even worse if Iran responds to last nights bombing of their personnel in Syria (a very dangerous situation indeed).
So while the Korea situation seems to be very positive on the whole, the world still faces a great many challenges which could be for the most part rectified by honest money and a reformed financial system. I believe there are many in power that know this and are gradually edging towards this very solution. Time will tell, but history is in the making.
https://en.wikipedia.org/wiki/Korean_War

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.