Gold - Ben Bernanke's Jackson Hole speech yesterday proved to be a non event. No new QE3 announced still Gold and Silver rallied pretty strong. But is we on our way much higher or is this still just a part of the correction, that began at 1,526.80? I'm still in the correction camp and expect the rally to end close to the 1,700 level. We can count a five wave structure from 1,589.82 and if we draw an Elliott Channel we can see, that wave v is very close to hit the channel-resistance line. A massive divergence has been building on this last rally, so all the ingredients is there for a top near 1,700.
Silver - The picture is pretty much the same here (the chart is just a daily chart here). The important message here is, that the decline from the February 29 high at 37.80 to the July 28 low at 26.12 was a five wave decline, which tells us, that we are looking at a second zig-zag lower and the B-wave should correct between 50 to 61.8% of wave A and we are currently sitting right at the 50% retracement target at 31.81 so a top could be in place very soon, but we must allow for a rally higher towards the 61.8% retracement target at 33.15 as long as support at 30.83 has not been broken towards the downside. However once this wave B correction is over I will be looking for wave C down towards at least 26.25 and likely even lower.
