Friday 27 June 2014

Another week of gains

The precious metals saw the fourth consecutive week of gains, with Gold and Silver seeing net weekly gains of 0.2% and 0.7% respectively. Near term outlook remains bullish, and we do have rather clear breakouts of the mid term down trend.


GLD, weekly


SLV, weekly


Summary

The gains this week certainly weren't spectacular, but still.. gains are gains, and it bodes well for the late summer/early Autumn.

If the broader equity market is 'spooked' by geo-political issues in the second half of this year, then Gold especially will be prone to catching a very strong fear-bid.

Right now, I see 'best case' upside to around $1500, but from there, I'd still be seeking the 2013 lows to eventually be broken next year.

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*I have no positions in the metals, and would consider shorting Silver in the early Autumn, but only if the equity market has been knocked 15/20% lower with Gold close to the big $1500 threshold.