2nd breakout in Gold and Silver - What lies ahead?

Gold broke out from a 7 week consolidation on Aug 5, 2026 and started consolidating shortly thereafter. After a brief consolidation of 7 days, gold broke out again last Wednesday, August 19th, 2026 into a prior narrow congestion zone.

A big green candle last Friday carried price to the upper boundary of the congestion zone closing at the high of the day (and the week). The congestion zone failed to offer any resistance, a significant event that communicates the strength of the move.

The weekly candle is a Big Green that closed at the high of the week right at upper boundary of the congestion zone, a horizontal resistance. It looks very likely that price, given its strength, would breach this resistance to climb higher next week towards the next resistance level ~4880.

Silver has a similar price structure with one major difference. Silver has been comparatively weaker than gold, and the breakout from consolidation happened a day later on Thursday, Aug 6. Also, the congestion zone is higher so silver is yet to cover a significant distance to reach resistance.

Both gold and silver look good to continue their ascent northwards, technically. Will the markets play along? Let time tell.

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