Friday 22 March 2013

Precious metals close the week..weak

A somewhat weak end to the week for Gold and Silver, with declines of 0.5 and 1.6% respectively. The weekly charts produced moderate gains of 1% for Gold, but fractionally lower for Silver. There is huge declining channel resistance just 2-3% higher.


GLD, weekly2, rainbow



SLV, weekly2, rainbow


Summary

The last two days of trading have been a bit messy for the metals. Thursday saw a significant gap higher, where the metals then flat lined for the rest of the day. Whilst today saw the metals gap lower..only to then flat line for rest of the day.


What about next week ?

The hourly charts offer significant gap upside for the Monday open, and certainly it would not be surprising if SLV is trading in the mid 28s early next week.

Interestingly, the USD appears to be starting a multi-day down cycle, and that should help to pressure the metals upward.

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Near term targets

GLD  158/159
SLV:  29.00-29.50

What happens at those levels will determine whether we see precious metals breakout to the upside..or get stuck at resistance.

A fail and subsequent rollover would bode for a break of the summer 2012 lows, with GLD in the 140/135s..and SLV in the 24/23s.