With traders back from the Holiday break, it's looking more and more like the end of the year is going to be a good time for the Precious metals complex. Gold, having held support at the 50-day MA, is now attempting to close back above the 20-day MA at $510.40. Should this occur, expect a sharp rally as we head into week's end.
Silver's technical picture is even brighter as it closed just above its 20-day MA on Friday and only needs to close above the 12/19 high of $8.75 to provide the fuel necessary for its own year-end rally. Silver may just take the lead in powering the metals to a strong weekly close.
Copper becomes more "precious" every day and remains the most resilient and determined market in the entire metals complex. I've said previously that there's no ceiling to this market as the trend in Copper continues to advance. Friday's breakout to new contract highs was a very good sign that $2.50, basis the January contract, is the next target. I certainly wouldn't bet against it.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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