TEHRAN (Iran News) – In last Wednesday’s gold update, I noted the likelihood of a November bottom and a pending breakout in precious metals. Gold is breaking higher confirming that outlook and the potential for an advance towards $2300. The trends in silver and platinum are even more bullish and could explode higher.
GOLD DAILY
The daily chart of gold has broken clearly above the intermediate trendline, confirming a cycle breakout and subsequent 6-month low in late November. Precious metals should rally into at least March, but April or May is more likely before correcting into the next 6-month low. My minimum target for this advance is $2300.
SILVER DAILY
Silver is also confirming a cycle breakout. The bullish divergence in late November (prices remained above the September high) suggests robust momentum behind silver moving into this advance. Consequently, I think prices could surge sharply higher over the next 3 to 4-months. I have a minimum target of $35.00, but $42.00 or higher is a real possibility by April or May.
PLATINUM DAILY
Platinum diverged even more bullishly than silver, building the potential for a powerful advance. In late November, when gold dropped to new lows, platinum hit fresh highs. Once above $1200, we could see $1500+ easily by April or May. Historically, the price of platinum trades well-above that of gold, so we have a lot of catching up to do.
Georgia Senate Update
The Georgia Senate race has tightened to nearly a coinflip compared to the 68% to 35% reported last Tuesday. If the Dems win both seats (currently 49% odds), that will change things from a divided government to one that is united. The Dems, if in control, would increase spending and stimulus, but with that comes the potential for higher taxes, which corporations hate. If they win, I suspect the likelihood of higher taxes could be enough to trigger a correction in stocks.
Also, several Senators said they would dispute President Trump’s election loss when Congress reconvenes on Wednesday. That opens the door for an investigation into claims of election fraud. It is unclear how this will play out, but if there is a genuine investigation, then that too could cause market uncertainty and a possible correction.
Silver and Platinum are leading gold and should outperform gold in 2021. Our educational metals portfolio is long GDXJ, SILJ, GDX.
- source : FXEMPIRE
