Precious metals

In my previous post on Gold, I wrote, “If we look at the chart we can see that gold has been making multiple inverse head and shoulder formation for the last 5 years and the neckline lies at 1350-1380. It had attempted to break above this level for 8 times and failed. Today once again gold is trading above 1380 and if it sustains above 1400, the target for gold most likely will be 1800 and maybe 2400 in the next five years.”

Since then Gold has moved up 20% in last 8 months and yesterday made a high of 1650 USD. The current move in gold should continue till 1800 USD. I believe gold will consolidate at 1800 level before further breaking out for higher targets. I continue to maintain the target of 2400 – 2500 USD in next five years.

In the same post I wrote, “Similarly, silver is also looking poised for a breakout and may move up to 20 USD and above.”

Since then silver also moved up 20% and made a high of 18.60 yesterday. Although the intensity of the move looks very low compared to gold. I believe that silver is on the verge of breakout and the target for silver will be 27 USD and further 35 USD in next 5 years. 

Summary:-

1) Expect gold to move to 1800 USD.
2) Expect some resistance in Gold price at 1800 USD
3) Ultimate target for Gold retained at 2400 USD
5) Silver is on the verge of breaking out and should move to 27 and 35 USD over next five years.