Precious Metals - The Quiet before the Storm

Trading is relatively quiet in the metals for the past month. There has been only a little volatility, and we now have clear bear flags on the weekly cycle for both Gold and Silver.


GLD, weekly, 2yr

SLV, weekly, 2yr

Summary

I remain holding to broad targets of $1200 and $20 for Gold and Silver respectively later this summer. The underlying thesis is that despite currency concerns in the EU, there are strong deflationary forces in the global economy this year, with both equity and commodity markets set to snap deeply lower in July.