In a previous article, I highlighted how a Head-and-Shoulders bottoming pattern on the silver chart suggested that the silver rally since the beginning of 2016 is likely to continue. This pattern has now matured nicely, thanks to the retrace to the breakout area. Below, is a silver chart (all charts from tradingview.com), with that pattern and the retrace to the breakout area highlighted:
Gold was up 1.5% and silver surged 3.1% yesterday after Janet Yellen again failed to raise rates from record lows at 0.25%. The Fed maintained ultra loose monetary policies which are again creating stock and bond market bubbles in the United States and other countries.
Precious metals have found strong support over the past couple of days, with gold surging back to $1,340 per ounce and silver to $20.00 per troy ounce. The U.S. dollar has weakened while benchmark government bond yields have fallen across the board once again.