Metals back on the slide

Whilst the main equity (and to some extent) the commodity market soared, the precious metals were once again weak. Gold and Silver closed lower by 1.0% and 0.8% respectively. Despite continuing QE, the metals remain weak, and a new multi-week down cycle looks viable.


GLD, daily

SLV, daily

Summary

With each passing day that the metals remain under the old broken support of May/June, it becomes increasingly unlikely that the metals are going to be able to muster any further gains in the current up wave.

Indeed, with today's decline - as also reflected in the Gold/Silver mining stocks, it would seem the metals are seeing similar price action to late March...a failed bull flag. In that instance, it was around 3 weeks..and then in mid-April..a very severe two day collapse wave.

So..are we looking at another severe drop in the tail end of August ?

The bigger weekly/monthly charts would suggest...yes.