A week of moderate declines

The precious metals saw moderate declines in the latter part of the week. Gold and Silver closed the week lower by 0.6 and 2.7% respectively. The near term trend is bearish, and it is expected GLD will hit 158 next week, which is a good $60 lower.


GLD, 60min

GLD, weekly2, rainbow

SLV, weekly

Summary

Nothing has changed in the near term outlook. A test of the big GLD 158 level seems very likely, and that remains a significant $60 lower than the closing level this Friday.

GLD 158, probably equates to SLV around $30/29.50, somewhere in that kinda price zone.
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How the metals trade in early 2013 will be significantly dependent upon the currency markets. With some surprising renewed weakness in the Dollar this Friday, it is now increasingly uncertain whether the metals will see a few months of weakness in early 2013.