Friday 4 October 2013

The precious metals remain weak

The precious metals saw further weakness this week, although there were some significant bounces along the way. Gold and Silver saw net weekly declines of -1.9% and -0.1% respectively. Near term outlook is somewhat difficult to discern.


GLD, weekly



SLV, weekly


Summary

So...some moderate weekly declines..with Gold (somewhat unusually) leading the way lower.

There are a lot of good chartists/commentators out there looking for levels equivalent to mine (see below), but they are first seeking one further major multi-week wave higher..to levels of GLD 140/150s

The problem is that the even bigger monthly charts are still extremely bearish, and a further wave higher will be very difficult. What remains an especially weak sign is that despite the Fed continuing QE at $85bn a month, the metals are simply not doing well.
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Mid-term targets remain unchanged...with further lows expected in 2014/15. A key cyclical low of Gold 1000/900s, with Silver in the low teens, possibly even $10 an oz..before the next grand cycle begins.