Metals trying to stabilise

Whilst the main equity and commodity market remain on the slide, the precious metals appear to be trying to stabilise after the recent collapse. However, today's relatively moderate opening gains failed to hold, with Gold closing fractionally higher, but Silver -1%.


GLD, daily

SLV, daily

Summary

These are now difficult times for those trading the precious metals. After the critical monthly/weekly support was broken, there is now severe downside still likely in the months ahead.

In the immediate term, the daily charts are suggestive that both Gold and Silver are due some sort of moderate bounce.

Underlying MACD (blue bar histogram) is still ticking lower, but we are clearly on an extreme lower end of what is a historic drop.

One notable aspect is that volume is lessening, and this in itself is probably a sign that the margin call sell side action is coming to an end.

So, near term bounce (probably)..but longer term, the much lower primary targets remain unchanged.