Consolidating recent rises

Consolidation for gold and silver is timely, given recent unprecedented performance. But is it sensible to lock in some profits?

This week, against a background of the BRICS summit in Kazan gold and silver paused, consolidating their recent heady runs. In European trade this morning, spot gold was $2720, unchanged from last Friday’s close, and silver was $33.25, down 40 cents on the same timeframe. Comex volumes were healthy, consistent with bull market turnover.

Undoubtedly, traders will be locking in some profits, because they account in fiat, not gold. But does it make sense for investors hedging fiat currency risk?

The next two technical charts are of gold and silver respectively, to give a sense of where we might be in this bullish move. First up is gold.