by David Brady
Sprott Money
While we wait for greater clarity on the big picture for precious metals and miners, the short-term scenarios are becoming rather clear.
GOLD
Following its fourth rejection at 1837, Gold fell to 1722 in a series of lower highs and lower lows. The latest rebound generated a great deal of optimism, but we have neither set a higher high nor broke any resistance of note. So far, Gold has been unable to get above 1770. But it’s in a bullish flag pattern, which suggests that if we do break up we’ll at least get a test of 1837. Above 1837 and 1920 would be the next target.
However, if this mini rally fails and decides to turn down, it’s becoming less likely that 1675 will hold. Personally, it would be ideal if we got a positively divergent lower low below 1675, setting up the next rally to 1920 or perhaps to new highs.