GLD, monthly
SLV, monthly
Summary
We're getting very close to a breakout, after an 18 month decline.
Bullish break levels, Gold, 1600, and Silver 28.50*
Bearish break levels, Gold 1475 Silver, 25.25
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*note that I use the terms Gold/Silver interchangeably for GLD/SLV.
I still think there is a fair chance of further downside in the metals, but if we do break a little higher, then those downside targets of $1300 and $22 can be taken off the table.
Bernanke & QE3
It still seems inevitable that the Fed' will spool up the digital printers at some point, although they may well wait until post US elections to look impartial. The effect of further QE on the metals seems at least moderately bullish, but the wide consensus of many economists is that the metals are not going to break the highs of 2011 for some considerable time (as in... years) to come.
Regardless, physical metals remain one primary means to have an insurance policy against the printing maniacs.
