Friday 19 January 2018

A little cooling

It was a choppy week of cooling for the precious metals of Gold and Silver, with net weekly declines of -$1.80 (0.1%) to $1333.10, and -$0.11 (0.6%) to $17.04 respectively. Near term outlook is bullish. The m/t outlook would turn decisively bullish if Gold >$1400 and Silver >$22s.


Gold weekly



Silver weekly



Summary

The first net weekly decline for Gold since early December, whilst Silver cooled for a second week.

Gold isn't far from what would be a very decisive breakout: >$1400. If that is seen this spring/summer, we'd see a fast run to psy' $1500, and the 1600/700s by year end.

Silver remains notably weaker than Gold, and is way below the highs from early 2017. Things would arguably only turn decisively bullish with >$22s.

Copper and oil are indirectly supportive of the notion that gold/silver will eventually catch up across 2018. If correct, very bullish implications for the related gold mining stocks, such as Barrick Gold (ABX) and Newmont (NEM).