A strong week for the metals

With Bernanke assuring the US capital markets that QE is not ending any time soon, most asset classes are still rising, with Gold and Silver both climbing by around 5%. Mid-term trend however is still starkly to the downside.


GLD, weekly2, rainbow

SLV, weekly2, rainbow

Summary

So..a 5% gain for both Gold and Silver, and no doubt the gold bugs are once again going to get overly excited that 'the floor is in'.

No..I don't believe so. The mid/long term trends remain severely bearish, and we've not even broken back above any of the old broken support levels.

Even if the floor was in, it is going to take many months to have even an initial idea that the down cycle since spring 2011 is over.

Long term downside targets remain unchanged, with GLD 90, and SLV 12/10.