James Turk – Gold & Silver Close To Breakout But This May Be The Biggest Surprise
James Turk – Gold & Silver Close To Breakout But This May Be The Biggest Surprise from King World News
With the price of gold attempting to surge back above the $1,300 level, James Turk told King World News that gold and silver are now close to breaking out but this may be the biggest surprise.
Gold & Silver Close To Breakout
April 8 (King World News) – James Turk: “Gold and silver weathered another option expiry and its aftermath, Eric. These month-end takedowns occur like clockwork, and sometimes at the end of a calendar quarter they can be brutal – like the takedown that just occurred…
Gold was pushed back under $1,300, while silver’s takedown pushed it below $15. But there is an important observation to make here. Both gold and silver found good support at these levels. This is particularly true for silver, which didn’t close below $15, at least so far. A few short intraday dips by silver below that level were met with ferocious buying, which is understandable.
The gold/silver ratio is still in the mid-80s, with a recent high of 86 ounces of silver needed to buy one ounce of gold. Their ratio should be much lower, but it just shows how out of favor silver is at the moment. So even though gold is undervalued, silver is even more undervalued than gold.
Month-End Option Expiry May Surprise
But I would like to get back to month-end option expiry because an important one is coming up for silver at the end of this month. It could surprise everyone. I’ve mentioned before that one of these days we are going to see an option expiry in which the precious metals explode higher, rather than get pummeled lower. Maybe it will happen with silver at the end of this month.