Gold, monthly, fib-levels
Silver, monthly, fib-levels
Summary
Despite a fairly big ramp in May, the metals still failed to close the month flat.
The declines of 6-8% are clearly still indicative of what could easily be deemed a multi-month collapse wave in progress.
The notion - as is still loudly touted in the gold bug community, that the metals have floored, is indeed nonsense. The monthly charts are absolutely clear. We are merely at month'2 down - after the decade-long up cycle.
Two months down..and there is probably a great many more down months to come.
Primary downside targets...
Gold - $1100/1000
Silver - $21 (already HIT).
The scary thing for Silver, is that there really isn't any kind of support until around $12 an oz, possibly the more logical/psy' level of $10.
Naturally, any gold bug reading the above targets would call them crazy, but then, those are the same people who have been touting Gold 5k and Silver $100 for the last ten years.
Eventually, the metals will recover..and break new historic highs, but the monthly charts are indeed clear. There is no sign that the current trend is ending, indeed..its really only just started.
