Gold prices are down on Monday morning. The Middle East geopolitical situation that remains very tense is keeping a floor under the gold and silver markets. The price of gold is trading at $2643.79, down $9.81. The price of silver is trading at $31.82, down 38 cents.
Silver has reached a 12-year record high, trading at $32.20 and showing a 36% year-to-date increase. Analyst James Turk suggests that the metal is facing a crucial test that could determine its path towards the $50 mark, a level not seen since 2011. Turk notes a bullish inverse head-and-shoulder pattern, indicating a potential breakout, with the buying zone between $22 and $24 serving as a strong foundation for accumulation.
Another analyst, Winston Wolfe, has identified a bullish signal in the silver market, with a quarterly breakout on the logarithmic chart suggesting the start of a potential bull run. This breakout is reminiscent of a similar pattern in the early 2000s that led to a 1,000% rally over seven years. Factors contributing to silver’s recent rally include geopolitical tensions in the Middle East and increasing bets on the metal’s industrial use in China following the rollout of an economic stimulus package.
