Monday was indeed a warning

The daily candles for Gold and Silver on Monday were of the black-fail type, and indeed, we have duly seen renewed weakness. Gold and Silver closed significantly lower, -1.4% and -1.3% respectively. Near term outlook is bearish, and the 2013 lows are still on track to be taken out this year.


GLD, daily

SLV, daily

Summary

I drone on a great deal about the importance of the black-fail, or hollow-red reversal candles. As I noted on Monday, those opening gains appeared very likely the high of the week..and today's decline was certainly not surprising.

The big issue now is whether GLD will break the 122s, if so..another $40/50 decline for spot gold will occur..along with $1 or so lower for spot Silver.