Comex gold and silver are consolidating, and this may continue for a while yet. Analyst Tom O'Brien describes February's gold's rally off of its $741.20 bottom this month as "really sweet," but nevertheless looks for it to be in a range of perhaps $810 to $860 for two to three weeks. The metals have shown a tendency to go into a consolidation period any time they have a fast acceleration off of a bottom, he says.
"The longer the floor is built, the higher they go," he says. "We're just building another floor right now." O'Brien looks for silver to consolidate between $10 and $11 for a while. "But once silver gets over $12.60, which may take a couple of months, we're going to see a big move," he adds. The metals are subdued in quiet post-Christmas trading, with February gold steady at $848 an ounce and March silver up 3 cents to $10.38.