The charts show that gold is likely to lead the next major move in the precious metals markets. For the past three years, the price of gold has split its time trading in a range between $1,750 and $1,850, and making several attempts to break out to new highs.  The green lines show a well-defined short-term downward channel that touched that $1,850 upper range line. The price then rebounded sharply, keeping it from re-entering that trading range.

If in subsequent days/weeks, the price begins to fall and remains in the short-term downward channel, gold could re-enter the $1,750/$1,850 trading range again for some time before pushing out to the upside. A decisive break above the top of the present green channel in the coming days could signal that this latest trip to $1,850 marks significant intermediate-term support, if not a potential longer-term low.

Silver, on the other hand, seems to be a metal in search of an identity. With the global economic environment deteriorating due, in part, to escalating geopolitical conflict, it seems as though it can't decide which is more prominent, its role as a monetary or industrial metal. As such, we believe it will act as it has many times in the past, where the price of silver initially lags gold, but then plays catch up in a hurry. Therefore, we wouldn't be surprised to see it trade within its wide range of $19 to $26 until gold makes a decisive move.