Metals in pre-election ramp

The equity and commodity markets rallied today, but this was especially the case for Gold and Silver, which saw gains of around 2% and 3% respectively. However, the metals remain in a broad down trend, on the daily, weekly, and even the monthly cycles.


GLD, daily

SLV, daily

Summary

Today saw surprisingly strong gains - relative to other asset classes, but despite the gains, the metals remain in very clear down channels, on all three main cycles. Doubtless, a lot of the metal-shorts will have been short-stopped out of their trades. 

Those on the bullish side should be desperate to see some follow through later this week. A failure to maintain today's gains would be extremely bearish, and open up potential for a severe one day fall.

Its been a fair while (March 2012) since we've seen Gold lower by $100 in a day, but I'm highly suspicious of todays little ramp.

I don't expect it to hold.