Precious Metals - net gains for the week

Despite some weakness in the latter half of the week, the precious metals still managed net gains on the week, with Gold and Silver +2.9% and 2.3% respectively. Weekly charts are showing Gold with a break of the down channel, Silver is yet to follow.


GLD weekly2, rainbow

SLV, weekly2, rainbow

Summary

The rather giant gap higher at the Monday open remains something of an anomaly, and despite some weakness in the past three days, the metals are still battling higher.

Underlying MACD (green bar histogram) cycle is at a very interesting junction.

If the metals can claw just another week higher, that will open up much higher levels... of GLD 147 and SLV 26 - within the next 2-6 weeks.


Best guess for the near term

Considering the MACD trend...it does look like the metals will break to the upside next week. Yet, in the past 9 months, we've seen time and again..such rallies fail. Next week will indeed be rather interesting.

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*I am holding SLV (long) across the weekend, seeking an exit in the low 20s, before the FOMC announcement of July'31.