Precious metals-ready for lift-off?

Yesterday’s gold performance was pretty much a repeat of Tuesday’s. It flirted with $2,500 but repeatedly came under selling pressure, taking it down towards $2,470. Gold managed to find its footing late afternoon, and built on these gains overnight. This provided a platform for prices to take off to the upside earlier this morning, pushing back above $2,500 and closing in on $2,520. Could this be the start of a bigger upside move? It certainly feels constructive, and it also helps that silver is rallying sharply as well. From last week’s high to Tuesday’s low, silver dropped 230 points, or 7.6%. Like gold, it managed to find some support yesterday, and it has built on that base this morning. But neither metal has yet to build enough momentum to achieve a full bullish breakout. Gold is getting close. If it can take out last month’s high around $2,530 convincingly, then that should encourage fresh buying. But silver has a tougher journey. There have been so many false dawns that it would probably need a rally and sustained break above $30 to convince investors that it has a chance of challenging its own record high from 2011.