However, breaking gold above the $2,800 level would change everything and should send it to the $3,000 level, which wouldn’t surprise me if this happened sometime in 2025. But I think the first few months will encourage lateral action. There is an upward trend line that I have on the chart for the video. I think it breaks, but not necessarily as a negative event, more or less as an event where we just drift.
Silver prospects
In the silver markets, it will probably be a bit of a different story here, and for several reasons. First, silver absolutely hates higher interest rates, even more so than gold, and there has been quite a bit of selling pressure. If the market falls below the $28.50 level, then I think we will be looking at the $26.50 level. Retailers often make the mistake of thinking that gold and silver are the same.
So some of you are going to end up on the wrong side of this market as gold may be floating a little bit higher in a range. That said, if silver could recapture the $30 level on a weekly close, things could change. But silver has a bad habit of getting very noisy and then rolling over. And we’re in the middle of something very similar right now.
Given the choice between the two metals in the first quarter of 2025, I quite handily prefer gold to silver. And in fact, some traders I know will buy gold and short silver, and make money on the difference. It’s called a pair trade. So it’s something to keep in mind. It’s not that silver can’t go higher. There are just far too many things working against this at the moment. Furthermore, if the industry starts to slow down, it will impact silver in a big way in a way that it doesn’t impact gold.