Gold Entering Seasonally Strong Period At 6-Year Highs
The gold price close will be significant today, as gold will print end of day, end of week, end of month, and end of quarter closing prices. Gold bulls really want to see a close above $1400 (the 2014 peak). If gold holds here, the next target is a weekly close above $1435 (the high from the 2013 dead cat bounce), which should drive further buying activity into the gold market. A strong close today will be significant.
Silver has lagged gold during this run, which is not very encouraging. The Gold/Silver ratio remains at 20 year highs. Nevertheless, silver has held support at $15.20, and held its uptrend channel. The chart remains constructive.
Pan American Silver
An encouraging development for silver is the recent move in Pan American Silver, one of the leading silver mining stocks. In the last post I wrote: “In the case of Pan American specifically, the stock has some work to do to get above the key $14 level. Bulls want to see price push through the 200 day moving average and down trend line. I would look to get long on a break of horizontal resistance at $14.”
Pan American has made up significant real estate in the past week, and has made its first test of both the down trend line and 200 DMA. Silver bulls would love to see a breakthrough here as follow through for silver’s recent price move.