Gold Rallies May Cap At $1,225/6, Silver Needs To Breach Key Fibonacci Level

Tokyo-Japan (Apr 11)  Although gold prices got a boost Friday, one analyst at Mitsubishi says the upside potential may be limited. “Rallies may be capped at $1,225/6, this week’s spot high and the 50% Fibonacci retracement of the year to date high to low,” says Jonathan Butler, precious metals strategist for the firm. Looking at silver, Butler says a break above a key Fibonacci retracement level may push silver prices past major moving averages. “The 38.2% Fibonacci retracement of the January to March high to low move is being tested at $16.52,” he says. “A break above this level may see silver clear the 50 and 100-day moving averages to the upside, confirming the bullish trend.” Butler also notes that silver bullion coins by the Perth Mint reached four-month highs in March “at 639 koz as investors and collectors bought into attractive prices.”

Source: KitcoNews