Precious metals rebounded towards record highs last week, as risk-averse investors and heightened global tensions flooded the market, and speculative buying interest resumed in earnest. The buying frenzy pushed the price of gold back above $1,400 per ounce, and Silver futures followed with a strong recovery back into its previous highs.

The recent consolidation is Silver futures has formed into an intermediate term Channel Down chart pattern, shown here on the Autochartist 60-minute time interval. Friday's strong gains in the market brought the price from a successful retest of the channel support near $31.50 all the way back to the upper end of the channel, before triggering an upside breakout above that level.

This may be the beginning of a new leg up in the silver bull market, as the projected breakout from this Channel Up formation would challenge the highs of the previous rally. The projected upside target is forecast in a range between $34.01 and $34.90 per ounce, which could initiate a wave of short-covering as the speculators take the upper hand once again in the precious metals complex.

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