Silver extends rally to 6% — an image to define the precious metals rally

The silver bulls are a special kind but this weekend they will be celebrating.

Silver has broken out today, in a technical waterfall.

It started with the break of $30/oz and the February high, which is just above. That’s led to a rush of buying and short covering in a 6% rip to $31.37. That’s the highest since 2013.

Now there isn’t much standing in the way, technically. The mid-2012 high was $35.40 and that’s a reasonable target given the momentum and enthusiasm for precious metals in general. Gold today is slated to close above $2400 for the first time (and also on a weekly basis). It’s also just a few dollars away from an all-time intraday record.

For the gold bulls, I think the image of Putin and Xi hugging is as good as it gets. It underscores their determination to define a multi-polar world that’s not dominated by the US — or the US dollar.

This article was written by Adam Button at www.forexlive.com.