Gold is higher this morning, but based on the pattern, it would be no surprise to see gold pull back to support before continuing the new uptrend that has developed over the past few days. The bottoms took a while to form but gold now looks poised for a run at $1,350 and possibly $1,400.

On the other hand, silver looks better but still needs another push to reverse its downtrend and make a run higher. Silver has reached resistance and needs a close over $15 before we will become bullish.

If you remember that markets are always right and that the footprints that are left will almost always lead you in the right direction, gold shows us that the path of least resistance is higher. In gold, we are buyers of dips, and in silver, we are still observing.

posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com