Why Precious Metals May Be Ready to Surge

Triangle patterns are forming in every precious metal, and they have highly bullish implications if confirmed.

Precious metals have largely treaded water since their sharp correction in late January, and many speculators and investors, at least those without true conviction, have moved on to the next hot asset, believing that precious metals have already had their run and that it is essentially downhill from here. I, on the other hand, have argued the opposite, maintaining that the secular bull market in both gold and silver (click the links to read my reports) is still in its early stages and that much further upside lies ahead.

Interestingly, it increasingly appears that the consolidation in precious metals since late January has formed triangle patterns that indicate even further gains if they break higher. If so, this would be one of many triangle patterns that have formed throughout the precious metals bull market of the past two years.

Let’s start with gold, which leads the overall precious metals complex. Please note that I am using logarithmic charts in this report because they are better suited for analyzing assets that have risen sharply over short periods of time, as precious metals have.

As the chart below shows, gold has been forming a triangle pattern since late January as it pauses following the powerful move that began in September. The only thing needed now is a breakout from this triangle, and the odds favor a move higher because momentum remains to the upside and triangles are typically continuation patterns rather than reversal patterns.

Assuming gold’s current triangle breaks out decisively to the upside, ideally on strong volume (learn more), I would not be surprised to see it run to $6,000 or even $7,000 fairly quickly, making this a scenario worth watching closely.

Triangle patterns in gold are nothing new, as we have seen over the past couple of years. In fact, this is the fourth such pattern to appear during this period, with the previous three leading to explosive gains.

I identified and wrote about the Winter 2024, the Summer 2025, and the Fall 2025 triangles in this newsletter, and many of my subscribers, along with myself, profited handsomely from those moves.

Moving on to silver, we can see the same bullish setup as in gold, and ideally I would like to see both metals break out together for greater confirmation. Assuming this triangle breaks decisively to the upside, it points to silver exceeding its late January high of $121 and advancing to $150 and beyond.