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Hey everyone, welcome back to Chart This, I'm Jerry Saffron. We'll earn more trouble in historically significant divergences unfolding in the global markets. Gold has surged an incredible 9.5% in just three weeks. Futures adding over $360 to trade. about 41-50 announced and at the same time I'm sure you've noticed. silver futures are finally shattered the historic $50 resistance, a level that has been kept the market since the highs of 1980 and 2011.

Jerry Saffron

Gary Wagner

Well, it's an interesting scenario. Futures pricing is usually above physical, but now spot silver is trading above futures which implies a true silver squeeze. Demand is far exceeding physical stock and volume has spiked tremendously. I believe we could see silver take out the former levels and reach $55 to $58 silver by end of this year or first quarter of next year.

Let's talk about gold as well. It has put up over $360 since September. How does silver breaking multi-year resistance add confirmation to gold's parabolic chart?

Jerry Saffron

Gary Wagner

Gold went parabolic beginning August 19th. The moving averages align bullishly and the spread between them is widening, indicating strengthening bullish market sentiment. The demand is stable and growing, with volume remaining brisk. Central banks accumulating and holding gold tightens supply and pushes prices higher.

Some people call for $5,000 gold. From a technical standpoint, is this a controlled breakout or a parabolic blowoff?

Jerry Saffron

Gary Wagner

Speculative money coming in droves can signal a potential top or a necessary reset; however, if fundamentals remain overwhelmingly bullish, gold can continue higher. I believe we are headed short term by end of year to $4,300 gold but corrections are possible without ending the rally.

How do you reconcile the US Dollar Index strength with the explosive rally in metals?

Jerry Saffron

Gary Wagner

Typically, there's an inverse relationship between the dollar and precious metals, but scenarios occur where both move together. The dollar moving up 2% means gold has to overcome strong headwinds to show gains. Despite that, gold and silver have moved up during September, indicating metals overcame dollar strength.