Rough week for the Metals

With the broader equity market rolling over in the latter part of the week, the Metals were similarly marked lower. The notion that QE3 will keep pumping asset prices higher...so far, its certainly not being seen.


GLD, weekly, 2yr

SLV, weekly, 2yr

Summary

We have clear rollovers on the weekly charts for both Gold and Silver, and there is no sign that prices are levelling out. In fact, we are due to go negative cycle on the MACD (blue bar histogram0 in about 2-3 weeks, that will be the prime time for a major snap lower.

First target on GLD is 162, and then 158.

SLV, 30, and then 27.

It will be very difficult for the deflationary bears to see Gold break back under $1500, but it is a possibility than even the most permabullish Gold bugs should consider across the next few months.