Gold popping; silver may have found support

New York (Jan 30)  Here we go again. Gold looks prepped to test the $1,600 level in the next couple of days basis the April futures. Silver may have found its long-awaited support level. Silver held just below $17.50 in the March futures and looks to test $18.

These key levels will go a long way towards determining the next big moves in the metals. Our overall outlook is the same – long gold, short silver. The patterns developing have not changed; gold has made a rounding bottom of higher levels and silver is still pointing lower.

Many are pointing to the corona virus, the Fed and other things for the recent movement in the metals. The bottom line is simple: price action determines movement. The way we read the patterns has us long gold and short silver. Until the action changes, we will stay in our same positions.

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