In our last newsletter, we said $1,850 would be a critical level for gold. Closing above it would mean another run above $2,000, while below it would leave gold vulnerable to an extended consolidation below the elusive $2,000 mark in 2024. As the chart shows, it bounced decisively off of the $1,850 level and established a new all-time closing high of over $2,080. The volatility that surrounded that spike was something we wanted to watch to see if it would hold, which is the reason this newsletter was delayed until the end of the month.

The good news is, hold it has. In fact, for the past month, with a three-day exception in mid-December, the price of gold has closed over $2,000 per ounce since Thanksgiving. This is very positive price action. Gold has now traded over the $1,850 range for the vast majority of 2023. In the process, it has established two solid uptrend lines. One intermediate term and the other short term (green lines). More good news is that some seasoned technical analysts believe a year-end close above $1,970 sets the stage for a major move in 2024. Unless something happens in the next few days that causes gold to shed nearly $100 per ounce, that level looks safe. 

Silver is, well... Silver. It is biding its time within a two-year trading range. $26 per ounce has been a major barrier over that time. We expect that when gold rises to the level that drags silver over that mark, it will do its typical "catch up" run, taking it quickly to the $30 per ounce range. That's just the way silver likes to roll.