Metals show yet more weakness

Whilst the equity indexes break the highs from last weeks FOMC, the metals suffered, with Gold and Silver declining by 1.5 and 1.9% respectively. The immediate term is likely to see further weakness, with Gold likely to fall a further $40.


GLD, daily

SLV, daily

Summary





As expected, the metals were due to show a renewed move lower this week, and we certainly saw that today. Today's declines were in stark opposition to the main equity markets which were significantly higher.

The Gold/Silver bugs will understandably be yet further annoyed by this latest move. Yet there is likely more of this to come.

Primary target remains GLD 158, which is still almost a full $40 lower than current levels. That probably equates to a further $1 to $1.50 fall in Silver.