Since the Federal Open Market Committee meeting last Wednesday, gold has traded higher for five consecutive sessions. With a strong weekly close on Friday, it finished out the week trading above double top resistance at $1,175. Its ascent has continued so far this week with the psychological level of $1,200 as the next near term target to watch for to the upside. Silver’s move has been even more impressive than that of gold. Since Wednesday of last week, silver is up nearly 10%. It moved easily through its 100 and then 50 day moving average and if it can close above $17, there is no major technical resistance until the 200 day moving average at $17.82. While silver tested its 200 day moving average four days in a row in January, it hasn’t achieved a close above this key technical indicator since August of 2014.

The dovish FOMC meeting last Wednesday was followed up yesterday by commentary from Fed Vice Chairman Stanley Fischer that further encouraged precious metals longs to add to positions. Fischer acknowledged that raising interest rates will likely be warranted before the end of the year but remarked that there are no plans for it to be a steady rise. This is because a steady path of interest rate rises does not factor in economic surprises such as the plunge in oil prices or geopolitical concerns.