Lousy start to Q4 for the metals

Despite a limited US Govt' shutdown, the precious metals opened sharply lower (Gold falling $41 in pre-market), and showed absolutely no strength across the entire day. Gold and Silver closed with very significant declines of -3.5% and -2.7% respectively.


GLD, weekly2

SLV, weekly2

Summary

I have to say, I was very surprised to see the metals get hit so hard before the market even opened.

What was the excuse this time for the hammer being brought out? Govt. shutdown ? How about 'ohh, its a new month/quarter'? Or...'there is no fear trade'?

Whatever the reason, the metals are showing the same kind of weakness we have seen since April. Big drops, and a lack of any bounce.

Regardless of how the metals trade in the remainder of this week, today's price action is a very bearish sign for the rest of the year.
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Mid-term targets remain GLD 90s and SLV 12/10.