Thursday 8 November 2012

Metals breaking against the declining market

Whilst the main equity and commodity markets have been especially weak in the past two trading sessions, both Gold and Silver are actually starting to build some upside momentum. This is quite surprising, and even the bigger weekly trend is now turning back upwards.


GLD, daily



SLV, daily


Summary

The near term trend is now upward, and the weekly is now also starting to support this change in momentum.

The monthly cycle is still suggesting general deflationary pressures though. Only if Gold can get a monthly closing >$1800, would I abandon my multi-month decline outlook.

It will be important for the Gold bugs to see the metals hold onto their gains into the Friday close. That would help clarify matters, at least for a few weeks.