Precious Metals losing momentum

With QE3 (without end) announced by the Ben Bernank', the metals have been stuck in a very tight range for over a month. Underlying momentum is still positive, but is clearly weakening. A pullback in prices seems very likely at some point this Autumn.


GLD, weekly

SLV, weekly

Summary

Since the lows in June, the metals have had a pretty good run. No doubt, much of it was all about pricing in QE ahead of the actual announcement. So, is it all priced in, if so..then where now?

A very natural pull to $160 for GLD and $30 for SLV seems very reasonable to expect in the coming 4-6 weeks. That level of decline would not damage the underlying new upward trend

Only with a break below the summer lows of $148 and $25 would it be confirmed that the recent move was merely a 'correction wave'.

Again, for the longer term traders/investors, it really comes down to the ultimate question of which is the more powerful force right now - inflation..or deflation.

I'm still inclined to go with the latter, at least whilst the velocity of money continues to decline, and whilst the banks (and most corporations) hoard their cash.