In last Wednesday’s gold update, I noted the likelihood of a November bottom and a pending breakout in precious metals. Gold is breaking higher confirming that outlook and the potential for an advance towards $2300. The trends in silver and platinum are even more bullish and could explode higher.
The daily chart of gold has broken clearly above the intermediate trendline, confirming a cycle breakout and subsequent 6-month low in late November. Precious metals should rally into at least March, but April or May is more likely before correcting into the next 6-month low. My minimum target for this advance is $2300.
Silver is also confirming a cycle breakout. The bullish divergence in late November (prices remained above the September high) suggests robust momentum behind silver moving into this advance. Consequently, I think prices could surge sharply higher over the next 3 to 4-months. I have a minimum target of $35.00, but $42.00 or higher is a real possibility by April or May.