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Are Precious Metals in Their Final Run Up?

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The first half of December will include important extremes for silver and the USD Index .

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Gold has been moving parabolically in the past few months, but is this the final run up?

I seriously doubt it, because the levels that I expect gold and silver to achieve (mentioned in the previous Premium Update) at the end of this bull market are still very far from where we are today.

Please keep in mind that the road to the top won't be a straight line, and because that's the case, it makes sense to take advantage of the inevitable corrections. Let's examine the chart of gold to check if we're close to another buying or selling opportunity.


Source: Stockcharts.com

Once gold broke out of its resistance line, it moved much higher (as suggested several days ago) and it has been moving in a parabolic fashion.

This type of upswing is usually very profitable for those holding the metal, but confusing for those trying to time the top. This time is no different, as the short-term chart doesn't provide us with any reliable targets for this rally.

On the other hand, gold appears to be the only part of the precious metals market that's really thriving. Such divergences aren't really encouraging for anyone long gold, or any other precious metal.

Let's turn to silver and check what the white metal likely to do next.


Source: Stockcharts.com

Silver has more than doubled in the past year, and it's finally very close to its 2008 highs. However, before these resistance levels are reached, silver much first breach through the rising red line that has proven a strong resistance many times in the past.

The Stochastic Indicator is currently above the 80 level, which means a top might be put here (it's a necessary condition, but not a sufficient one). The RSI isn't in the "extreme overbought" territory yet, but it's now very close.

While it may make sense for super-aggressive speculators to wait for the final signal, from my point of view it seems that most investors would be better off closing their positions a little earlier.
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No positions in stocks mentioned.
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