Risk Remains but Reward Dominates in Gold and Silver

August 29, 2023

Today, I am looking at the bullish and bearish cases for gold and silver. While both have rebounded off the recent lows, the risk of a lower low has diminished, but it is certainly not zero. However, I believe the risk to the downside pales in comparison to the pending rally ahead.

The Bullish Case for Gold

[…] As previously stated in prior articles, unless 1900 is broken to the downside, the rally to new highs remains intact.

Wave 2 on the chart above was a near-perfect 38.2% retracement of the Wave 1 rally from 1618 to 2085. This is a standard Wave 2 correction. If so, the following Waves were Wave i and ii of Wave 3. Next comes the big money Wave, iii of 3, to the upside, breaking 2085 and setting a new record high on the way to ~2400 next.