Friday 22 June 2012

Another difficult week for the Metals

With the FOMC deciding to only extend operation twist by six months - and no new 'proper QE', the metals are showing renewed weakness.

GLD, weekly

SLV, weekly


Primary targets remain on track..$1300 and $22 for Gold and Silver respectively.

It is even possible the metals will see a VERY significant snap lower next week, with SLV falling to 23/22 - if the sp' can break a new low < around 1225.

July will likely show considerable losses for both metals, where should be approaching their targets. I'd expect the metals will take at least a month or two to form a decisive floor.

A special note, in that if the SP' fails to hold the critical 1100 level - and puts in a new low <1070, then my targets (as low as they already seem) will likely be exceeded.