The world witnessed a massive gold and silver price surge as the US dollar tumbled to hit new lows. The classic safe-haven assets have now started to show a mellowed stance, seemingly entering into a corrective phase as predicted by experts. What is next for silver and gold prices? Will they continue to shine in the long haul?
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Silver Price Enters Corrective Phase
According to Rashad Hajiyev, a leading financial expert, metals are slowly entering a corrective phase, a development that may decrease their current price valuations. Hajiyev explained how silver has embraced the fifth Elliot wave, per the metals price chart, showcasing a structure hinting at a possible price slowdown.
“I believe metals are about to bottom. According to Elliot wave theory, markets move within a 5-wave structure (3 advancing/declining and 2 corrective). Silver just completed the 5th wave, which marks the completion of the present declining cycle. Next, silver shall produce counter-corrective A-B-C wave structure…”
Hajiyev later predicted how this phase is essential for the metals, as it may pave the way for further upside in the future.
“Precious metals are preparing for a major jump higher. The present sell-off will ignite the coming rally…”
Next Leg Up?
However, Hajiyev was quick to add how this bottoming phase may eventually help the metals gain further clarity. He later shared how the gold price is eventually targeting a $6K high, with the silver price looking forward to exploring $96 in the near future.
“The gold-to-silver ratio (GTS) could break a rising 14-year channel anytime. With the silver price around $50, the ratio has not done anything yet. Immediate technical support upon breakdown of the channel comes at the 2011 low around 62. Over time, the ratio could reach 31. With a hypothetical $6k gold price and GTS 62, the silver price could soar to $96…”
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