Silver continues to do everything it should to make a break closer to the 14.00 level with 12.70 now providing initial support and with 12.30 something of a line in the sand.
I do not expect silver to trade back below 10.30 for the forseeable future.
As for gold, it could be the one thing that spoils silver’s parade. I feel we will need to see gold break above 930 in order for silver to have a fighting chance and the break of gold above 930 could in fact be the catalyst that propels silver to 14.00. Expect gold to be very well supported on dips back to 870 with the only note of caution being the overbought nature of the RSI and Stochastic which i would like to see work a little lower before making an assault on the 930 level. I do not expect to see gold back below 800 for the forseeable future.
I am still expecting to see gold set new highs and silver head back to 20.00 in the first half of 2009.
