Friday, 18 July 2014

Significant net weekly declines

The six week consecutive run of gains came to an end with significant weekly declines. Gold and Silver net weekly declines of -2.1% and -2.7% respectively. Near term outlook is mixed, whilst the breakout from early June is holding.


GLD, weekly


SLV, weekly


Summary

Indeed, the near term outlook is pretty mixed.

The metals certainly can catch a 'fear bid', via any sporadic geo-political issues, as we saw just this past Thursday. Yet.. once the market calms down...the gains are quickly returned.

The big issue is when the 2013 lows will be broken. That could be this later this year..or not until 2015, and it is tricky commodity to predict on the best of days.

Regardless, I hold to Gold eventually testing the giant $1000 level, and probably slipping somewhat under it for a few months..perhaps the low $900s.