This Could Set Up the Metals for Fireworks By Mid Summer:
Gold and Silver prices are moving higher today after retesting critical resistance levels.
After a big rally over the past week, gold and silver consolidated gains and traded down to technical support levels at $1250 and $17 early this week ahead of today’s FOMC Minutes.
Amazingly, the metals began to rally after the release – even with the Minutes suggesting that another rake hike is likely soon.
With a June rate hike now all but assured, we suspect the market is finally beginning to realize that gold and silver prices have begun strong multi-month rallies with each of the last 3 Fed Rate Hikes.
Should one materialize, momentum should finally return to the sector once silver crosses $18 and gold trades back above $1300, as the market will then clearly be able to see a potentially large bull move is underway.
This combined with the suddenly plunging dollar index and the market facing reality that large Trump tax cuts are unlikely in 2017 could set up the metals for fireworks by mid summer.