Monday 14 July 2014

Big gap lower.. and then flat lining

Whilst US equities started the week on a fairly positive note, the precious metals opened sharply lower, but then effectively flat lined for the entirety of the day. Gold and Silver saw net daily declines of a very significant -2.4% and -2.3% respectively.


GLD, daily


SLV, daily


Summary

It was the biggest opening gap lower for the metals in many months, but there was no follow through.

Daily MACD (blue bar histogram) cycles have turned negative, and lower levels seem very probable for Tuesday.


Market awaits the Yellen

There remains major opportunity for the metals to recover as the week progresses, but that will be highly dependent upon how the market reacts to what Fed chair Yellen has to say.

Best guess... at least some further downside, but the weekly/monthly charts are suggestive of broader upside later this year.

*at the same time, I am STILL seeking the 2013 lows to be broken at some point, with a wash-out in Gold...at least to the $1050/950 zone.