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The Worst Is Over for Gold and Silver

Gold bars and chart on the background

While I still believe we have a little further to go on the downside in Gold and Silver, I am expecting a bottom in both of them sooner rather than later. I say this because there are clear comparisons between Gold and Silver today and when they bottomed back in October 2023 and kicked off the rallies to $2802 and $35.07. This reinforces my belief that both will head higher again to the true peaks at $36-$40 and ~$3000.

 

GOLD

gold price chart

Note the similarities in the indicators.

gold price chart

The Daily RSI supports lower before higher. However, the MACD Histogram is already much lower than it was in October 2023. The MACD Lines are close to identical. Bearish sentiment is also nearly equal. This makes a strong argument for a big rally to a higher peak soon.

The weekly data is far more bearish, but I believe that signals the even bigger drop after the next peak in wave 5. That MACD Line number at 102 in particular screams lower, but after a new negatively divergent higher high.

 

SILVER

gold price chart

Again, notice the similarities in the indicators in Silver.

gold price chart

Different asset, same story. The daily RSI has room to fall, as does the MACD Line. The daily MACD Histogram is already lower than it was in October 2023. As with Gold, the weekly data allows for a negatively divergent higher high, but down it goes following the next peak.

In a proverbial nutshell: short-term down, then up to a new higher peak, then look out below.

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

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About the Author

David Brady has worked for major banks and corporate multinationals in Europe and the U.S. He has close to thirty years of experience managing multi-billion dollar portfolios including foreign currency, cash, bonds, equities, and commodities. David is also a CFA charter holder since 2004.

Using his extensive experience, he developed his own process utilizing multiple tools such as fundamental analysis, inter-market analysis, positioning, Elliott Wave Theory, sentiment, classical technical analysis, and trends. This approach has improved his forecasting capability, especially when they all point in the same direction.

His track record in forecasting Gold and Silver prices since has made him one of the top analysts in the precious metals sector, widely followed on Twitter and a regular contributor to the Sprott Money Blog.

*The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.