Nice little move lately for the two precious metals in our headline. Gold now has a few resistance points to get though to keep the faithful happy- the first being right around current levels at $1350. Following a breakout through that level we’ll see pressure at $1425, $1475 and $1550. The good news for gold bugs is that, not only do the precious metals often rise into October, but the charts support that move this time around. Momentum indicators RSI and Stochastics are hooking up favourably. I hold a position in a gold bullion ETF at this time.
Silver is showing some life too. It looks to have firmly broken out of its $20 lid – next nearby resistance comes in at $22 then $24.50 and finally $28. Momentum also looks favourable for silver at this time, although it is further ahead of gold. I do not hold a position in silver.