Monthly precious metal update

The precious metals remain at an important junction. Either the metals are in multi-month bull flags, or this is a wave'2 bounce - from the original decline that started in summer 2011. The break/snap levels are very clear, and we'll probably know within the next 3-6 weeks, which formation we are dealing with.


GLD, monthly3

SLV, monthly

Summary

There is not too much to note on the metals at this time. The past month saw moderate gains of 3% for Silver, whilst Gold was effectively unchanged.

The deflationists will wish to see GLD test, and break the 158 level. The equivalent level for SLV is the big $30 level.

GLD bulls should be seeking a break above 175. If we can see a monthly close >180 at any point in early 2013, then GLD will probably soar into the mid 200s.

One thing is for sure, we won't be trading in this narrow range for much longer.

Finally, as any monthly chart clearly shows, on a multi-year basis, the precious metals remain in relentless up trends. The only issue still seems to be, the rate at which they increase.