Two weeks ago, Gold had a mini “capitulation” in Asian trade that took the precious metal below $1160 before reversing aggressively the following days. And currently, we are trading well above that low as Silver continues to grind out a new cycle/trend low. In the event Silver bounces, the risk for a gold rally is high. We have a bull flag from the lows and the RSI is also developing a bull flag formation. At this time, a break above the $1200 level in the spot price could cause a short squeeze towards the $1240 level, being the breakdown point which was the lows from December 2017.
