As we transition from August to September within the course of this trading week, we very well could have just experienced the Black Swan event over the weekend, and its name is Harvey. Gold & silver are breaking out right now, and the dollar, well, look out below…
After spending last week in “consolidation”, the metals are already making their moves.
We have been saying a move is imminent for weeks now, and while we have not seen the rises we have seen set up on the charts, we have not seen the big drops either, and this consolidation looks exhausted considering the lack of any on the year.
The smashing of late have had little effect on the gold price and silver price in the short term. Yes, they have been able to knock down prices, as evidenced by last Friday, but the prices have not stayed down for long.
On the daily, gold looks to be holding up and ready to punch through the stout resistance:
$1300 has acted as resistance, or the line in the sand, three times so far in 2017. The battle is not finished there, however. Going back a year, we can see that gold could have some more trouble in the $1310 – $1315 range. What we should really be hoping for is a break-out through that level, then coming back to bounce off it if we must. For this week, however, I guess we could settle for a close above $1300, but at this point, we should really be expecting more, unless the smashing will continue. There was calm overnight and no sneak attacks.
Silver is fighting resistance of its own: