Monthly charts offering a giant bear flag

October comes to a close, with Gold and Silver seeing net monthly changes of -0.3% and +0.8% respectively. In terms of price formation, the big monthly charts are simply offering a giant bear flag, whilst all indicators remain outright bearish into 2014.


Gold, monthly, fib levels

Silver, monthly, fib levels

Summary

Recent price action has been somewhat confusing, but the bigger picture remains very much bearish.

Without getting wrapped up and overly focused on the micro-cycles (including, even the daily), the bigger outlook for the metals is still deflationary in nature.

I'm still looking for Gold 1050/950, with Silver in the low teens, if not briefly 12/10, before the next great multi-year up wave.