Gold & Silver breaking above resistance and moving much higher

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	Silver Is Up Over 70% In A Year, Here's Why Experts Say It Could Have Further To Go
	Silver was trading around $27 an ounce on Wednesday, a 74% rise from a year ago. . . . Holly Ellyatt
	Germans Own Over 9.000 Tons of Gold
	Gold as a gentle cushion of peace: Many Germans rely on the precious metal as crisis protection . . . . Von Goldreporter
	Does Inflation Signal Lift-Off For Gold
	Data out on Wednesday showed consumer prices in the US up by 4.2% in April compared with a year ago. . . . Graham Smith
	Gold Regains Its Shine After Inflation Risks Resurface
	On Friday, the gold price rose as the US ten-year Treasury bond yield fell after worse-than-expected employment data was released. . . . Saloni Sardana
	Silver Markets Struggle With $28
	Silver markets have shown signs of exhaustion after initially trying to rally during the trading session on Friday. . . .Christopher Lewis

Gold broke the very important $1,800 per ounce resistance level on May 6th and has closed above that level for the past six trading days. During that period, Gold has traded between $1,808 to $1,848 per ounce, as it consolidates recent gains and builds a firm base for the next leg higher. Gold closed last Friday at $1,838, up $7 per ounce for the week.

Last Wednesday, the U.S. Labor Department reported that the April consumer price index jumped 0.8%, up from the 0.6% reported in March. The Labor Department stated that the food and energy component was the key driver of this increase, as it soared 0.9%. This inflation news caused Gold trading volume to increase while rallying $20 per ounce. This $20 rally was surprisingly bullish considering the U.S. Dollar Index and interest rates had moved higher last week. Gold has confirmed a bullish direction in the past month and many professional floor traders are no longer selling into rallies but are now buying on dips.

Between recent Federal Reserve policy announcements and continued stimulus funding from the United States and other large world economies, which are printing trillions of Dollars, Yuan, Euro and Yen, the prices of Gold/Silver are going much higher. I believe that after Gold builds a base above the $1,800 level, it will continue to move towards $2,000, reaching it by August, then $2,200 before year-end. Gold has a past track record of moving up quickly after it breaks resistance. Last year, Gold moved from $1,800 to $2,080 in just three weeks (July 17th to August 7th 2020).

Today: This morning Gold traded above and below the key $1,850 level in Asian and early European trading, until low interest rates and U.S. Dollar caused a breakout. Gold broke out above the $1,855 level and it kept on going, reaching a high of $1,868, when we saw light short-term profit taking. Seeing Gold stay above $1,850 for the next couple trading days would confirm a new trading range with a short-term target of $1,900 per ounce.

Last week, Silver closed above the key $27 level all five trading days. Silver closed Friday at $27.36 per ounce, while reaching a high of $27.99 before ending the week down $0.10. In the past month, Silver has moved from $24.72 to over $27.36 per ounce (10.7% increase), on increasing trading volume. At that rate of increase, Silver could reach $35 before August. I would like to see Silver consolidate its recent gains and build a base above the key $27 per ounce support level before moving above $28. Last week, the Silver-to-Gold ratio stayed steady at 66-to-1.

Today: Silver moved above $27.50 in early trading, then broke out above $28 when Gold rallied. Many short-sellers ran to cover when Silver moved above $28, which drove the price to reach $28.30 before seeing light selling. Today’s rally should cause higher demand and premiums on the many popular Silver investment items, considering the current shortage of supply.