With Wednesday’s Fed meeting past, precious metals can resume their uptrends. A breakout in gold should extend to challenge $1700+ in March.
Gold Breaking Out: Prices are just now breaking free from the January mid-cycle consolidation. Prices should continue higher for another 4-6 wks and challenge 1700+ in March before this 6-month cycle peaks.
Silver Prices Flushed: Tuesday’s 3.31% collapse is silver likely flushed retail traders out of their positions just before the next advance. These moves create massive liquidity so large traders can enter at rock bottom prices.
A daily close above 18.20 will establish the next leg higher and support a rally to 20.00+.
Silver could exceed the 21.25 high set in Y 2016.
Junior Gold Miners Target: The symmetrical cup with handle pattern in juniors is nearly complete. Tuesday’s retest of the 50-period MA was likely the final pullback before prices break above 43.00. The traditional cup w/ handle pattern supports a target near 52.00.
Overall, expect metals and miners to continue higher into March, potentially peaking with the coronavirus.
From there, assume a multi-week correction into the next 6-month low and subsequent buying opportunity late Spring and early Summer.