Silver chartist confirms the Dubai Old Gold Souk’s $60 September price target

Posted on 30 January 2012 with 1 comment from readers

The widely followed technical chartist Clive Maund has confirmed the $60-an-ounce price target by September for silver set by the Dubai Old Gold Souk last week (click here) in his latest review of the sector. This builds on a bullish outlook for gold that is leveraged with investment in silver.

He writes: ‘On the seven-month chart for gold we can see that on Wednesday it broke out from the consolidation pattern that it has been stuck in since it peaked last August-September. This was a strong move on significantly increased turnover, which is bullish, and was a move confirmed by a massive upblast by precious metal stocks.

‘This breakout is therefore viewed as marking the end of what has turned out to be a period of consolidation, and the start of a major uptrend that should take gold much higher – comfortably to new highs.’

Major uptrend

Clive Maund’s conclusion is that a major uptrend is just starting in gold and silver, their ETFs and stocks and that this is a good time to buy if you have not already.

The monthly ArabianMoney investment newsletter published tomorrow will give some interesting ideas on how to leverage up the coming silver price increase to subscirbers only (click here). From CliveMaund.com:

With the price of silver being, range bound at a $60 an ounce has made the market bullish for the highly fluctuating gold markets to rally past and increase their price in the market. Over a year since the price of the gold was, ranging between a particular pricing patterns seems to have finally break the glass ceiling and go past the rates with a new high, which could prompt the gold market to perform well.

The increasing price of the silver has lead to a growth in the ETF area where the gold and silver ETF are doing well, with the correct time to buy that gold like bonds without any actual gold in hand. The focus is on driving the gold price, which is influenced, by the silver market largely, with many trading in the Bitcoin Loophole trading platform the amount of profits in daily average basis has been considerably good. The return on investing on either the EFT or the physical gold could be much higher than buying the silver at a pint when their pricing is high and there is lot of volatility in the markets.