Metals jump at the open

Whilst the equity indexes opened weak, the precious metals were the one bright spot in the markets today. The opening gap higher held across the day, with Gold and Silver closing 0.5 and 1.4% higher respectively. Near term trend looks moderately bullish.


GLD, daily

SLV ,daily

Summary

It was something of an unusual day for the metals. Both Gold and Silver opened higher, and then merely traded in an exceptionally narrow trading range across the entire day.

With this consolidation of the opening gains, both Gold and Silver now have bull flags on the hourly charts, and look set for further gains tomorrow and early next week.

A challenge of the absolutely critical declining resistance now looks likely in the middle of next week.

We'll soon see whether Gold/Silver are about to begin a very large multi-month rally. If they fail...then the summer 2012 lows will be quickly tested..and next time, I'd not expect them to hold.

Next week will be indeed...mission critical.