A Precious Metals Update

Precious metals and miners rebounded strongly today as the financial world returned from vacation and trading volume began to normalize, setting the stage for a resumption of the bull market.

What a difference a few days makes! Just last week, precious metals investors were on the defensive, as both metals and miners saw sharp pullbacks. These declines were initially triggered by CME futures exchange margin hikes and further intensified by the thin trading conditions typical of the holiday period.

Now that the holidays have passed and the financial world is returning to full activity, both metals and miners have rebounded strongly. This recovery serves as clear confirmation that the bull market remains firmly intact, which I never doubted. In today’s update, I’ll show you where precious metals and miners currently stand and what to expect next.

Let’s begin with gold, specifically in the form of COMEX futures, which rallied 2.71% today after rebounding from the confluence of support I highlighted in my last update. This move pushed gold back above the key $4,400 resistance level that was established at the mid-October high. This is both encouraging and reassuring, and I believe it reopens the strong likelihood of a rally to $5,000+ in the near future, as I previously outlined.

Now that gold is back above the key $4,400 level, the next hurdle I am watching is the $4,600 resistance that was established at last week’s peak. Assuming gold closes above that on strong volume (learn why that’s important), we will be in blue sky territory, and the move to $5,000 and beyond should be next.

Despite the recent volatility, silver delivered an impressive 5.87% gain today, rallying off the key $70 support level I highlighted in my last update. I’m relieved to see this price action, and it gives me much greater confidence in silver’s short-term outlook.