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Gold
closed on Friday at $783.90, another 27-year high. Gold is therefore only
$16.10 below $800, which has been my upside target for this year. The gold
chart below suggests we may soon exceed that price.
 
Silver
also did well this past week, and it actually outperformed gold, rising 4.9%
on the week compared to gold's 2.6% advance. Nevertheless, silver remains
within its pennant consolidation pattern formed since last year.
We can
see in the above charts the divergence between silver and gold that I
highlighted in the last alert. Gold has broken above its May
2006 high, but silver is still below last year's high. Silver needs to break
above $14.85 to confirm that both precious metals have resumed their major
uptrends. As I noted in the last alert, this non-confirmation is not a reason
for worry, but it does represent something we should be watching carefully.
Meanwhile,
the US Dollar Index closed the week at another record low.
The
trends are clear. The precious metals are trending higher, while the dollar
is heading lower. I see no reason why these trends are about to reverse
course.
Short-term
corrections can of course occur at any time, but don't let those distract
you. Go with the major trend. Own the precious metals and avoid the dollar.
James Turk
Goldmoney.com
James Turk is the founder
of GoldMoney (www.goldmoney.com) and the co-author of The Coming Collapse of
the Dollar (www.dollarcollapse.com). Copyright ©
2007 by James Turk. All rights reserved.
Published by
GoldMoney
Copyright © 2008. All rights reserved.
Edited by James Turk, alert@goldmoney.com
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