Metals slammed lower

The precious metals opened sharply lower, and saw consistent weakness across the day. Gold and Silver closed with rather severe declines of -2.9% and -5.6% respectively. With the break of support, the metals look set for at least another day or two to the downside.


GLD, daily

SLV, daily

Summary

The recent week or two of price action has been one of general price consolidation..after very strong gains from the June low.

Today's drop is very large, but there is a considerable way to go, before those June lows are in danger.
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Underlying MACD (blue bar histogram) cycle has been warning of trouble for some days, but on any basis, is now very low on the cycle.

Another few days lower..before forming a short-term floor.

Immediate targets: GLD 122,    SLV 20,  that is around 4-5% lower.
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The mid term outlook remains unchanged..with GLD 90s.. and SLV 12/10, but those seem unlikely to hit until at least mid 2014.