A red start to May

The precious metals started a new month on a weak note, with Gold and Silver closing off the lows, -0.4% and -0.6% respectively. Silver remains especially weak, having broken the lows from late Dec, all that remains are the July 2013 low of 17.75.


GLD,daily

SLV, daily

Summary

Suffice to say, another lousy start to a new month for the metals.

Seasonally, a typical low would be in August, so we are probably looking at a further 4 months of weakness. Whether that will be enough time to knock Gold to the giant $1000 threshold, that is very difficult to say.

Regardless of the near term, broader trend IS bearish, and I do indeed seek Gold in the low $1000s, before we see a key multi-year floor.