Gold and silver have remained in a range trade throughout Friday’s Asian, London, and now NY sessions, as the metals consolidate their ‘gains’ from Thursday’s QE∞ announcement.
Silver is seeing massive buying support on any dips to $34.50, as at least 10 occurrences have seen silver test the level and move back higher since the level was cleared during yesterday’s vertical move. A close above $34.50 today should see silver challenge and easily clear the critical $35 level early next week, if not later this afternoon. The downside currently is minimal compared to the upside potential after an 18 month consolidation followed by QE∞.
Gold is likewise consolidating above $1770, in a tight range trade of $1770-$1775 while it gains energy for a test of $1800. Once $1800 is cleared, gold is set up for a rapid move back to it’s all time nominal high of $1915.
$34.50 and $1770 look to be the accumulation levels currently for gold and silver. Those who did not prepare by adding a proper allocation of physical gold and silver insurance to their portfolio prior to yesterday’s Fed announcement would be wise to look to enter at these levels.
As we mentioned yesterday, new all-time nominal highs in both gold and silver are now locked and loaded. It’s only a matter of time.