The Fed fail to inspire the metals

With the FOMC deciding not to do any new QE, the metals showed some moderate weakness today. Certainly it was nothing dramatic, but then what do the metal bulls now have to look forward to this August?

Both gold and silver remain in mid-term down trends, and show no sign of a turn.


GLD, monthly

SLV, monthly

Summary

With major QE3 off the table until at least mid September -if not post US November elections, the metals are failing to ramp up despite a lot of pro-metal talk out there.

The levels are clear, as are the targets...

I remain holding to targets of $1300 and $22 for Gold and Silver respectively.

There appears to be nothing in the near term to reverse what remains a significant down trend. Considering the fact that both equities and commodities are yet to show some kind of capitulation floor, if the main markets do see a major wave lower, the metals will be severely whacked lower - at least to what I consider to be pretty fairly balanced targets.