Metals holding within bear flags

Gold and Silver opened moderately lower, but saw a very strong reversal in the first hour of trading. Gold turned a $10 drop to a $15 gain by mid afternoon, although around half the gains eroded into a slightly weak closing hour.


GLD, daily

SLV, daily

Summary

Despite the pretty impressive morning reversal, both of the precious metals remain within bear flags..and a final fifth wave lower - as part of a large B wave 'bull flag' seems very likely.

Underlying MACD (blue bar histogram) cycle shows no sign of levelling out yet, but we are getting real high, and a down cycle seems due to begin within the next few trading days.


Major up wave due

What is most important, is that all the price action since the highs from last September is probably a giant bull flag, and if the main equity/commodity markets continue to climb into the spring/early summer, then very significant gains look due for both Gold and Silver.

I don't expect historic highs for Gold or Silver in 2013, but we could easily see Gold around $1800..and Silver testing the big $40.