Gold and silver fell yesterday on a technical breakdown. Gold could consolidate in a wider $1240-$1290-$1360 range for a few months. Questions are being asked to how can gold rise? Two factors can result in gold zooming over the next few months (a) There is a clear indication that global central bankers (including the Federal Reserve) will raise interest rate at a slower pace next year. (b) There is an armed attack by NATO forces in North Korea. I will prefer to use the current correction and further correction (if any) in gold and silver to invest for next year. Option traders can invest in far dated call options in gold and silver. Silver options will be cheaper than gold options. No one is interested in investing in silver. Silver could be the dark horse of next year.
One needs to trade very carefully on the last trading day of the month and first trading day of the month.
This post was published at GoldSeek on 30 November 2017.