Metals getting toppy

There remains a great deal of hysteria surrounding the precious metals of Gold and Silver. The infamous gold-bugs continue to tout future price targets for gold of anything from 5k to 20k, yet here we are, with great economic uncertainty - not least concerning the FIAT currencies, yet Gold remains well under $2000.

We've certainly seen a strong little ramp across the last two trading weeks, yet its starting to look pretty toppy. A pullback looks due.


GLD, daily

SLV, daily

Summary

The monthly and weekly cycles are still broadly downward since spring 2011, yet we're close to breaking out. It remains a 'marginal' situation, regardless of what the gold-bugs might like to believe.

Sure, if we see GLD 165, and SLV 33, then things can be said to be breaking out. For the moment, the cycles are mixed.

The daily cycles are now very clearly at the top of the range, both in RSI - and other indicators, I'd expect a pullback of 2-3% at least in the coming 3-7 trading days.

Lets see if we can put in a higher low at the next pullback, that does seem very likely right now.