Friday 28 February 2014

Powerful monthly gains for Gold and Silver

Gold and Silver saw the strongest net monthly gains since Aug' 2013. Across the month, Gold and Silver climbed a powerful 6.3% and 10.2% respectively. Although significant, the gains only bring the metals back to levels seen last October. Immediate outlook is moderately bullish.


GLD, monthly


SLV, monthly


Summary

Regardless of how you want to count the waves from the key 2011 top, the February gain is significant, but it does little to reverse what remains a broader downward trend.

GLD needs to clear 135 - equiv' to spot Gold $1400, before there is any hope that the floor has already been put in.

SLV needs to clear 25 - equiv' to spot Silver of $26.
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As it is, I still hold to the broader downside target of Gold $1050/950 by mid 2015.

I could be wrong, and without question, if Gold puts in a monthly close >$1500, then I'd drop my primary target