A bullish January for the metals

With a weakening USD, the month ended on a positive note for the precious metals, with Gold and Silver higher by 1.4% and 2.5% respectively. Across the month, Gold and Silver saw net monthly gains of $59.70 (5.2%) to $1211.40, and $1.55 (9.7%) to $17.54 respectively. Near/mid term outlook is bullish unless the Dec'2016 lows are broken.


Gold, monthly

Silver, monthly

Summary

We have a key multi-year floor in Dec'2015. The Dec'2016 low now makes for the first key higher low.

Now its a case of whether Gold and Silver can break the summer 2016 highs. If that is done, it will absolutely cement the 2015 core low, and the 2016 higher low.


Lets be clear....

If we see Gold $1400s and Silver in the $22s, it will give high confidence that the next giant multi-year up wave is already well underway.

A monthly close for Gold in the $1400s will offer a test of the 2011 high of $1923.70... although that does seem well out of range this year.

Any monthly close for Silver in the $22s will offer further upside to at least the $30s by late 2017/spring 2018. That is of course though, still well below the bubble peak of $49.82 in April 2011.

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The near/mid term bullish outlook will only be negated if Gold/Silver break the Dec'2016 lows.

Yours truly is now looking to get involved in the metals/miners trade.