Gold & Silver – Next Move Could Be Sharply Up ! – 8/10/2016

Gold & Silver – Next Move Could Be Sharply Up ! – 8/10/2016

As things stand right now, it looks like the next move in precious metals is going to be sharply up unless dollar does some trick. World is now peacefully accepting the reality that no matter what, the rates are going to be lower.  US treasury yields can’t escape the malaise and savers are going to be punished hard.

If Gold and Silver can’t be tamed by strong dollar then this current consolidation points very bullish picture.  Even strong NFP wasn’t able to push these cousins to the next big support level to at least challenge the uptrend.  Rather it looked like more of a correction within bullish developments.  We don’t know what the next spark will be but if something sudden happens like last year August equity meltdown then Gold and silver will rocket higher.

Again we are not gold bug but just trading the reality. If circumstances change then we need to change the trade accordingly.  But right now our both long trades are looking good and it looks like we should add more long exposure via calls or call spreads.

Follow us on Twitter @Bombay_Bulls for trade updates.

GOLD_Weekly_Chart_Aug_10_2016

GOLD_Weekly_Chart_Aug_10_2016