May 31st Closing Prices

Gold is still correcting its recent gains and its climb over $700. No one knows when this correction will end, but given the increase in physical demand at current levels in the $630's, I believe we are closer to the end of the correction than to its beginning.

Regardless of the short-term picture, the long-term picture remains bullish.

Note the ovals that I have drawn on the above chart. In the 1970's there are two instances when gold pulled away from its uptrend line to score huge gains within that decade's bull market. There is a lot of similarity between the current situation (third oval) and those previous experiences. Will history repeat? I think it will, but only time will tell.

The picture in silver is also developing strongly.

We can see that silver continues to build a huge multi-decade base of accumulation (the green lines outline the base). So silver's long-term picture remains bullish as well.

Published by GoldMoney
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Edited by James Turk, alert@goldmoney.com

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