GLD, monthly
SLV, monthly
Summary
First, lets consider Gold. Friday was indeed the biggest jump in Gold in over 3 years (I think). With GLD closing below the 2008 channel in May, we have ALREADY had a warning of significant downside. I would guess last Friday was just a brief trading anomaly.
Only with a break above 165/170 can I get bullish on Gold.
Downside target remains somewhere in the $1400/1200 range, later this summer.
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As for Silver, the metal remains considerably weaker than Gold. Only with a break above 33/35 can I get bullish on Silver.
Downside target for Silver remains 22/20, possibly as low as $17.50 - if a major deflationary wave is not proactively stopped by the central banks.
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I remain long term bullish on both Gold and Silver, yet we are still due a number of months to consolidate/reset the larger cycles. Arguably, any further declines should be merely seen as a bonus buying opportunity for the physical - certainly rather than 'paper silver/gold'.
Good wishes
