Third week lower for Gold

The precious metals of Gold and Silver saw net weekly declines of -$8.10 (0.6%) to $1223.00, and -$0.06 (0.3%) to $15.49 respectively. Near term outlook offers further downside, not least if the USD strengthens. The m/t outlook has turned very bearish, with Silver <$16s, and Gold having failed to hold the Dec'2017 low.


Gold weekly

Silver weekly

Summary

Suffice to add... a third week lower for gold, whilst silver fell for a seventh consecutive week.

It can be argued that both metals are cyclically on the low side, and due a multi-week bounce, but there is ZERO sign of a s/t floor/turn.

Further, the recent breaks of key m/t support bode for far lower levels. With Gold <1230, old legacy target of 900/875 is valid. That would likely equate to Silver $10 or so. I recognise that is a very long way down. I would argue though, unless Gold >1400, the gold bugs have nothing to get confident about.