A month of cooling

The precious metals of Gold and Silver saw a very broad - and significant, month of cooling, with net declines of -$77.40 (6.0%) @ $1217.50 (intra high 1306.00), and -$1.90 (10.6%) @ $15.99 (intra high 18.06). Mid term outlook remains bullish, as the breakout levels remain intact.


Gold, monthly

Silver, monthly

Summary

After four consecutive months of gains, it was not entirely surprising to see the precious metals see some cooling.

The fact the USD climbed across May added to the downward pressure on the precious metals.

With renewed confidence in the capital markets, both Gold and Silver have lost a great deal of the 'fear bid', that both had accumulated since the Dec' 2015 lows.

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My outlook is that the precious metals will capture a renewed fear bid - on capital market upset this summer, and lasting into the autumn.

A key issue is that equities should remain under the summer 2015 highs. If however, the sp'500 can break above 2134, it would bode very badly for Gold and Silver... and by default... the related mining stocks.

So... for the gold bugs out there.... keep an eye on the equity market!