James Turk, who along with the master Jim Sinclair were among the only precious metals analysts calling for a big run in gold over the summer, today called for gold to pass $2,000 in the next 45 days, and for silver to challenge $50 before the end of the month (September).
The big question is whether silver will fly right through $50 and start a major rally, or whether $50 will take 2-3 attempts to take out convincingly, much as the $1,000 level provided significant resistance for gold but after the 4th tap, it was off to the races.
So here we are back at $40 once again, testing support under the market. If the present pattern is repeated, and we’ve seen this pattern all summer long, sharp selloffs are met with consistent, steady accumulation of physical metal.
It’s this type of action that is a sign an upside explosion is imminent as the paper shorts are eventually forced to run for cover. So looking forward we should be focusing on $50 silver. The key here is to watch resistance in the $42 to $43 area. When that resistance is hurdled on the upside, silver will be ready for the next major leg higher and there is a good possibility that will happen this month.
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