Metals battle strongly higher

Whilst the main equity market saw continued weakness, the precious metals were the strongest area of the market. Gold and Silver built very significant gains across the day, settling higher by 1.8% and 3.3% respectively. The broader outlook remains bearish though.


GLD, daily

SLV, daily3 - H/S formation

Summary

So..another big bounce for the metals, but we've seen this over and over again since the grand top in spring 2011.

Today's move is impressive, but really, the bigger trend remains to the downside.

Baring a few daily closes in the $20s, SLV primary downside target remains 17.00, with GLD 110, both targets being viable before the end of this year.