Analyst: Gold's peak risk intensifies, silver welcomes breakthrough opportunities.

Analysts pointed out that recently, the price of gold has soared from $2,960 per ounce to $3,500 in just two weeks, showing almost a vertical increase. However, the momentum indicator has not confirmed this upward trend. Despite gold reaching new highs continuously, the proportion of closing prices making new highs has not risen in sync. This divergence between price and momentum warns that the upward trend of gold may be about to reverse. In contrast, silver is on the verge of breaking through an important resistance level after a long period of consolidation. In a report titled "Institutional View" released to clients on November 8, 2022, analysts pointed out that their model issued a long-term buy signal when gold was at $1,680. In a report released on April 22, analysts mentioned that gold triggered a short-term sell signal. This is because as the price of gold shows a vertical upward trend, the premium of its trading price relative to the long-term moving average has reached its highest level since 2011 (as shown in the chart above). Additionally, although the price of gold has climbed to $3,500, gold mining stocks have not reached new highs in sync, which also constitutes a negative divergence. Based on the current trend, there is a risk of gold falling to the range of $3,100 to $3,000. In stark contrast, silver, after a long period of silence, is gearing up for a breakthrough. The weekly chart shows that silver is preparing to break out of a large consolidation range that has lasted for five years. Technically, silver has formed two gradually rising "box pattern" formations above $30. Currently, the price of silver is $33.58 per ounce, and once it breaks through the $35 mark, it is expected to reach an upside space of $45 to $50. More excitingly, from the monthly chart, silver is completing a massive 14-year "cup and handle" pattern. Once the price of silver breaks above $36, the analyst's research will confirm the upside target of $45 to $50. To take advantage of the potential breakout opportunity in silver, analysts recommend investors to focus on Hecla Mining (HL.US), the largest silver miner in the US and Canada. It is worth noting that last week, the Trump administration included Hecla's Libby exploration project in Montana in an executive order to increase domestic mineral production, which is undoubtedly a major positive for Hecla.