Hopefully you had added to and started positions in the precious metal space as gold, silver and the precious metal stocks are all heading higher. Although I would not be surprised to see some draw down after yesterday's explosion to the upside (on heavy volume across the spectrum), I would use pull backs to add to positions. At the very least, we are likely to see the yellow metal test the area in the range of $1,400 and silver may head to a price point between $22 to $25 in the near-term.
I could offer up many charts and analyses to support this claim but lets look at the price chart of Royal Gold (ticker:RGLD), the gold broker and one of the equities most leveraged to the delta in precious metal prices.
RGLD broke out to the upside of it's 52-week trading range on accelerated volume. As I have mentioned before, the precious metal stocks usually lead the price of the metals. RGLD breaking out above the yearly range not only suggests the price of the stock is heading higher but that price of the metals will follow.
I could offer up many charts and analyses to support this claim but lets look at the price chart of Royal Gold (ticker:RGLD), the gold broker and one of the equities most leveraged to the delta in precious metal prices.
RGLD broke out to the upside of it's 52-week trading range on accelerated volume. As I have mentioned before, the precious metal stocks usually lead the price of the metals. RGLD breaking out above the yearly range not only suggests the price of the stock is heading higher but that price of the metals will follow.
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