Metals snap sharply lower

With renewed concerns about weaker Chinese demand, the precious metals opened sharply lower, but saw a minor reversal/bounce develop across the day. Gold and Silver saw net daily declines of -1.8% and -1.7% respectively. With the break of bear flags, near term outlook is bearish.


GLD, daily

SLV, daily

Summary

*despite a daily reversal (hollow red) candle for both metals, I'm still largely bearish. It would be very surprising if this was a one off down day.
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The bear flag on the daily charts has been confirmed, and we're on our way down again.

Today was day'1 of a down cycle that could easily last a good 6-8 trading days, taking us into end month.
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*Copper broke back under the key $3 threshold, and this bodes badly for the metals, but also the broader US equity market - not least the mining stocks.

Broader downside targets remain: Gold 1000/900s, with Silver 12/10.