Precious metals markets enter the fourth quarter near a potential inflection point on the charts (see below). Gold and silver traded mostly sideways in the third quarter, with gold losing less than 1% for the quarter and silver managing a 2.5% quarterly gain.
The money metals finished the month of September on a bit of a down note last week. However, no major technical levels got breached.
The technical setup on the silver chart shows a three-month consolidation narrowing toward an endpoint.
Bulls are looking for a weekly close decisively above the $20/oz level to confirm an upside breakout. A strong break below $19, however, would put the bears in the driver’s seat.
Either way, investors should brace for a big move in the silver market in the days ahead, probably before the end of October.
About the Author:
Stefan Gleason is President of Money Metals Exchange, the company recently named "Best Overall Online Precious Metals Dealer" by Investopedia. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC and in hundreds of publications such as the Wall Street Journal, TheStreet, and Seeking Alpha.