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Gold Price And Silver Price Forecast – Bullish Consolidations

The price action for both gold and silver continues to show bullish implications for the establishment of the long-term lows we have been watching for the last several months. What we are seeing now are bullish consolidation patterns, which are very healthy for markets that have had recent strong rises. We are watching several critical support areas for these consolidations, the holding of which would set the precious metals up to begin a trending move to the upside through the later part of this year and into 2017.
Recent Price Action for Gold

Zooming in our charts to better gauge the bottom formations, we can see the clear break of gold's 2.5-year down channel on the recent surge above $1,220. Note that this has broken the series of declining highs as the price moved above the October 2015 high of $1,190. Ideally, we would like to see gold price hold above $1,180-90 on any further weakness and consolidate in the new price level. Such would be very constructive so that the internal workings of the market do not get overstretched too quickly. Quick, rapid price spikes tend to lose momentum and give back much of their gains, whereas slow and steady gains tend to have staying power in the market.