Gold breaks a critical 2008/12 channel line

The trend has been weak for both Gold and Silver for some months. Today, GLD broke a key level on the monthly cycle. From a big perspective, it is now absolutely clear, Gold is going to $1200..and Silver to $20/17.50..sometime later this year.


GLD, monthly

SLV, monthly

Summary

The trend is clear, today's loss in Gold is a VERY important break through a key support/channel. It violates a trend line going back to October 2008. Gold/Silver will probably bounce a little for a few days now, but it won't last, the weeks..and next few months will be brutal for the Precious metals market.