Gold prices have been ranging for the last two months. That is unwinding the overbought condition. Meanwhile, silver has returned to a position of outperformance, observes Eoin Treacy, editor of Fuller Treacy Money.
There will be dips along the way, but gold will always come back because the only thing we can rely on politicians to do is spend money they don’t have.
(Editor’s Note: Eoin is speaking at the 2025 MoneyShow Masters Symposium Las Vegas, set for July 15-17. Click HERE to register.)
Provided gold continues to hold above the 200-day moving average, there is no reason to doubt the integrity of the medium-term uptrend.
As for silver, it has been holding the move above $36 and improving on the breakout. This has been a long time coming. But it is a welcome sign that retail investors are becoming more active in the sector.
Silver tends to do best in the second and third psychological perceptions stages of bull markets in gold. The fact it is now moving to outperformance suggests we are in the “Acceptance” stage of this move.
Investors have gotten the message. They understand a big bull market is underway. Some are overweighting precious metals and mining shares. But it is still a trickle relative to the flood that occurs in the third psychological perception stage, which is characterized by mania.
