Gold consolidates while Silver explodes – By Todd Horwitz, Bubba Trading

 

Tuesday looked like the metal’s markets were going to explode higher. At one-point gold was up almost 30.00 Dollars trading almost 1360 in the December futures. Gold settled at 1556 and is now trading 1548. For gold it’s the continuation of a consolidation pattern as it prepares to breakout to new highs once again.

On the other hand, silver continues to explode to the upside surpassing each of our target prices of 18.00 and then 19.00 dollars per ounce. Today silver traded as high as 19.69 in the December futures. The Gold Sliver ratio has fallen from 90-1 to 79-1 which we wrote about months ago. We expect that ratio to continue to narrow while expecting bit gold and silver continue rallying.

Both gold and silver continue higher although in different patterns, gold in consolidation and silver moving up parabolically. We expect both metals to continue there moves higher targeting 1600 gold and 20.00 silver. Look for both metals to consolidate before breaking out to the upside once again.

Todd Horwitz
Chief Strategist
BubbaTrading.com

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.