Friday 5 December 2014

Weekly gains, but very bearish outlook

The precious metals managed rather significant gains this week. Gold and Silver saw net weekly gains of 2.1% and 5.3% respectively. However, price structure is yet another multi week bear flag... another wash out into year end looks highly probable.


GLD, weekly


SLV, weekly


Summary

Suffice to say... with the US dollar at five year highs, and set for much higher levels (not least if the ECB start a QE-pomo program), the metals look highly vulnerable.
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Holding to broader downside targets...

Gold $1000, if not the 900/875 zone in second half of 2015.
Silver 12/10
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If those targets are correct, the mining stocks will remain very subdued, regardless of how strong the broader equity market is.