It finally happened: gold hit new all-time highs. During the night trade, December gold futures were trading at $ 2000 an ounce. The big question is what will happen from here. The overnight action was extremely volatile and as of this writing gold was flat.
All signs point to the rally continuing, although a pullback would not be a surprise. As we have written every day, the pattern is bullish gold should make new highs; nothing has changed. Until the pattern changes direction, we are buyers. Support expects gold to continue to rebound. We are now targeting $ 2,250 gold futures in December.
Silver has also been a monster and reached our first September futures target of $ 25 an ounce. The nightly high was $ 26.27; our new silver target is $ 30 an ounce for the future of September. Like gold, the high amount of silver overnight has brought sellers, which is extremely healthy for the market. In rising markets, pullbacks to support our buying opportunities.
Platinum also joined the party and traded over $ 1,000 October futures in the overnight session. We expect the recovery of metals to continue across the board. With the Federal Reserve meeting on Wednesday, we expect an announcement that will be more favorable for metals, which is likely to trigger a pullback and a buying opportunity.
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