Another metal massacre

With the wider US markets seeing broad declines, the precious metals were particularly affected. Gold and Silver saw severe falls of 5.3% and 7.9% respectively. Near term trend looks terrible, and much lower levels appear very likely across the next few weeks and months.


GLD, daily

SLV, daily

Summary

A number of factors contributed to today's severe fall.

-The USD is back on the rise, with both the daily and weekly charts offering significant upside.
-The main US equity market is now on the slide, and that has often been a major drag on the metals market.
-Both Gold and Silver have taken out key support from the mid-May lows
-weekly/monthly trends for the metals remain strongly to the downside.

Put together, today was not unexpected,  and made for yet another fiercely bearish day for the metals.  There is simply no real support until GLD 120, and SLV 17s
--

Monthly charts are offering GLD 90, and SLV 12/10...but those deeply lower levels might take until 2014/15 to be hit.