Gold Price BREAKOUT Target (When Does Silver Get It's Turn?)

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The gold price has recently broken out to new all-time record highs, but the run for the metals is far from over. There are several factors that indicate a continuing bull run for gold and possibly silver as well. In this discussion, we will delve into these factors and set a price target for gold, along with exploring when silver might experience a price breakout of its own.

One key factor to consider is the cup and handle pattern that is forming in the gold chart. This pattern is a bullish signal that extends an uptrend and presents opportunities to go long. The length, depth, and volume of the cup and handle formation are key factors to confirm the strength of the pattern. Currently, the cup and handle formation in the gold chart suggests a potential price target of $3,150 for gold.

While gold has already broken out to new highs, silver may follow suit in the near future. Recent data shows a significant decrease in the amount of physical silver held by the SLV ETF, which could potentially trigger a spike in the price of silver. Similar situations have occurred in the past with other metals like palladium, indicating that a shortage of physical silver could lead to a sharp price increase.

Market manipulation is another aspect to consider in the price movement of precious metals. Instances of manipulation, such as the spoofing of gold prices by traders at JP Morgan, have been documented in the past. However, the extent to which manipulation affects the overall market remains uncertain. Factors like public sentiment, investor behavior, and market dynamics also play a role in determining the price movement of gold and silver.

It is essential to keep an eye on key ratios, such as the gold to silver ratio, to determine when to potentially exit positions. Changes in these ratios can provide valuable insights into when it might be a good time to adjust holdings or consider diversification strategies. Overall, accumulating physical gold and silver during times of relative undervaluation can prove beneficial in the long term as a hedge against inflation and economic uncertainty.

In conclusion, the bull run for gold and silver is likely to continue, with both metals presenting opportunities for investors to capitalize on price appreciation. Factors such as the cup and handle pattern in the gold chart, decreasing physical silver holdings, and market manipulation all contribute to the overall price movement of precious metals. Staying informed, watching key ratios, and being prepared to adjust positions accordingly can help investors navigate the volatile yet potentially rewarding precious metals market.

Definitions:
– Cup and Handle Pattern: A bullish chart pattern that signals an extension of an uptrend and presents opportunities to go long.
– SLV ETF: An exchange-traded fund that tracks the price of silver bullion.
– Market Manipulation: The act of artificially influencing the price or availability of a financial asset for personal gain.
– Gold to Silver Ratio: The ratio of the price of gold to the price of silver, used to gauge relative value between the two metals.

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