Friday, 16 June 2017

A second week lower

The precious metals of Gold and Silver declined for a second consecutive week, settling net lower by -1.0% and -3.1% respectively. Near term outlook threatens further weakness, especially in Gold. Mid term outlook is increasingly uncertain, as Silver and the related miners broke core rising trend in early May.

GLD weekly

SLV weekly


Gold/GLD: note the weekly MACD (blue bar histogram) cycle. Its set to turn negative before end June. If that does occur, it will bode for significantly lower levels this summer.

Silver/SLV: Silver has been far weaker than gold since the big turn in Dec'2015. Last week saw a key lower high put in - relative to April, and now its a case of whether the May low ($15.21) is taken out.

Best guess... it sure ain't looking so bullish for the precious metals. Leaning bearish.

*As ever, how the precious metals trade will have massive implications for the related mining stocks. Its notable that the ETF of GDX ended the week on a bearish note, with another borderline break under core rising trend that extends back to the multi-year low of Jan'2016.