Metals on the slide

Despite a somewhat weak dollar, the precious metals are seeing some serious weakness again. Gold and Silver look especially weak on the weekly charts, with targets of GLD 158 and SLV 30. If the dollar starts showing some strength in the coming festive period, the metals will be hit hard.


GLD, weekly, rainbow

SLV, weekly

Summary

Despite the hysteria in the gold bug community -where there is still talk of Gold $2000 in early 2013, the precious metals are in real trouble right now.

We have some strong divergence, and its suggesting that the late summer bounce..is likely over.

In the immediate term, GLD looks set for a fall to 158..where a bounce is likely to 160/62.

SLV looks set to for a hit of the big $30, where it would probably bounce back to 32.
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In the long term...precious metals will probably see massive upside, but..as noted..near term looks weak.