Gold and Silver

Gold Stock Technician (09/09/2009)
"In light of Tuesday's decisive break down in the U.S. Dollar. . .we believe that the path of least resistance for the precious metals is still higher. For Gold, we look for a decisive close above $1,000 over the next few sessions, with prices rising toward $1,100 to $1,150. On the weekly chart, gold is not the least bit overbought, and therefore is in excellent position to move higher. I might add that gold is also exceptionally well positioned on the longer-range charts when viewed in terms of foreign currencies, so again, we like the near-term outlook going forward.

The next resistance for silver comes in at $18.00, and then in the area of the former highs near $20–$22. We believe the $20 area will be approached in the next few weeks with silver also not materially overbought on the weekly chart. Bottom line: both metals look well positioned to continue moving higher."

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