The prices of gold and silver saw massive breakouts this week, but the next upside moves will be extremely powerful.
November 13 (King World News) – Eric King: “James, you talked about the big breakout number on gold being $1,835. We saw that level taken out on the upside. There was follow through and the market has acted very well since then, but how important was that breakout?”
James Turk: “To me it was very important. And it’s not just gold, it’s also silver. As we were watching that head & shoulders pattern develop in gold, similarly, a head & shoulders pattern started developing in silver, and they both broke above their necklines at the same time. That, to me, is a very, very powerful signal.
These head & shoulders patterns are significant. The head in the gold price when it went down in August, that was a selling climax. And that’s typically what you see at a head in the inverted head & shoulders pattern. Then you had the move back up followed by another selloff in September but it did not go as low. But what it did do was it shook out the last of the remaining weak hands.
So emotionally those patterns show what investors are thinking. And it shows that there are not a lot of people in the market and there is also a lot of money on the sidelines, and that’s ultimately what drives prices much higher.”
Eric King: “You mentioned silver, James. Talk about the breakout in silver and the price levels you are watching now.”
James Turk: “Well, I am watching…to listen to James Turk discuss what key levels to watch in the silver market and why the mining stocks are poised to explode higher CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the gold and silver breakouts and what to expect next CLICK HERE OR ON THE IMAGE BELOW.
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