Gold: Bulls are clearly in control

Gold – Silver

Gold Spot we wrote: A break above 1850 targets 1875/80, 1895/1900 & eventually the 2011 high of 1911/20.

Nearly there after 3 strong days of gains.

Silver Spot we wrote: Bulls in control so a break above 2040 targets 2080/85 & 2300/05, perhaps as far as 2535/39. – We reached 2323 & are pausing but there's no sell signal in overbought conditions.

Daily Analysis

Gold rockets as far as 1895/1900 & eventually likely to retest the 2011 high of 1911/20. Obviously this is going to be key in severely overbought conditions. A sustained break higher (& weekly close above for confirmation) is a buy signal for next week.

With bulls clearly in control the downside is likely to be limited at this stage, despite overbought conditions. However below 1887 risks a slide to 1877/75, perhaps as far as 1867/65.

Silver severely overbought in short & longer term but definitely no sell signal as we hit 2300/05, perhaps as far as 2535/39. If we continue higher look for 2346/49 & 2390/95.

With bulls clearly in control the downside is likely to be limited at this stage, with minor support at 2236/32 & 2195/85.

Chart