With that in mind, today's post will be annotated monthly charts of gold and silver. The gold chart, shown above on a log scale, is sooooooo close to definitively breaking out to the upside. Rallies in June and July have stopped precisely at the line of resistance originating from its 2011 peak. The monthly MACD and RSI have both undeniably turned higher after a brutal couple of years. In fact, the RSI has just pushed above the midline (bullish) for the first time since 2013. Volume has been increasing on the rallies which is what bulls want to see. The final nail in the bear market coffin will come when Gold can manage a monthly close above that descending blue trendline. If and when that happens, it has a clear shot, from a charting standpoint, at recapturing its 2011 highs.
[It's worth noting that if you plot the same chart above using a linear scale instead of a log scale, gold has already broken above that descending line of resistance.]
From a support and resistance standpoint, Silver has already cleared the biggest hurdle now that it's overcome the long-term resistance on the chart. I'm seeing a bit of congestion in the low $20s and then again in the low $30s. Both areas will likely act as intermediate resistance but nothing too major.
All in all, both metals are painting a very bullish technical picture. Throw in some extremely strong fundamental arguments for higher prices, and we have a winning combination.
And just for fun, I'll leave you with this 50 year chart of Silver..........