Tuesday 18 December 2012

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


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.