“What goes up, must come down” is one of the oldest maxims in investing, as is “nothing goes up in a straight line”. They might sound like overworked clichés, but that doesn’t make them any less true. In fact, they perfectly describe exactly what we’re currently seeing in gold and silver prices. The long-term bull market for both metals is on and here to stay. However, in the short- to medium-term, the gold and silver charts indicate that we’re likely heading into a temporary correction.

Gold

After its recent rally to above $1’550, gold was not able to maintain that level. Based on the technical analysis of Christoph Geyer, a renowned market analyst of Commerzbank, the upward trend has been broken.

The next downside support is expected to come in at about $1’480. Mr. Geyer does not expect that support to hold. He expects a possible correction all the way down to $1’440. That support level, however, should hold and would present a great opportunity to buy or stock up.

Source: Finanz und Wirtschaft, IDMS

Silver

Like gold, silver also has not been able to continue its steep ascent. It is currently testing the upward average trend line. According to Mr. Geyer, that trend line will not be held. He expects a retraction to $17 per ounce.

Once the $17 level is reached, buying or stocking up is again recommended, as the long-term bullish trend in silver and gold is fully intact.

Source: Finanz und Wirtschaft, IDMS