Silver Outlook: Technical Setup Supports Summer Price Spike

Silver has seen notable upticks before the last two presidential elections, and signs point to a repeat performance.

Confirmation of this trend would be a breach above $30.00, likely triggering a surge towards $40 between June and August.

Should prices fail to overcome the $30.00 mark in May, the next opportunity will arise following the next intermediate cycle low expected in the first half of June.

Presidential Election Silver Spikes

Volatility increases ahead of presidential elections as markets anticipate leadership change or more of the same. In 2016 and 2020, prices spiked into July and August respectively, setting up a potential repeat in 2024. A short-covering rally could drive prices towards $40 by late summer, with a spike to $50 possible.

Metals and Mining Update

GOLD- Gold is breaking away from its consolidation pattern and could make fresh cycle highs in May. To promote this view, I'd like to see one or more closes above $2400. 

SILVER- Silver is breaking strongly from the consolidation pattern and could reach fresh highs in May. Should prices break through $30.00, the ingredients are in place for an explosive rally. 

PLATINUM- A breakout above $1000 appears imminent and could spark an explosive move towards $1150. 

GDX- Miners closed above $35.00, and prices could challenge $40.00 in May should gold make fresh cycle highs. 

GDXJ- Juniors closed decisively above $43.00, and we may be entering the next stage of this advance. 

SILJ- Silver juniors jumped over 5% and finished just above $12.00. We could see significant upside, especially if spot silver breaks through $30.00. 

Conclusion

Metals and miners confirmed new bull markets. The setup in silver looks explosive and prices could rip to the upside above $30.00. Expect a peak sometime in July or August.

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