The precious metals have been in a correction mode for almost a year. Some Pundits (scarcely containing their glee) declared that the gold bubble had burst and that gold reached its top at 1,900/oz. These Pundits tried to convince us that people preferred dollar bills (of which an endless amount can be printed) to gold.
The correction, which grew into a mini bear Market, is just about over.As in 2008, silver is leading the breakout:
The first breakout occurred in July while the MACD was still negative and rising.The second breakout occurred yesterday, along with the MACD moving to positive territory. One Analyst pegged the required close at 27.30 and silver moved past that.
For gold to break out, it needs to close above 1,630. If it does, then it will rapidly advance because of the shorts squeeze that is expected at 1,700.
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