Friday 31 October 2014

Metals in free fall

It was a very bad week for the precious metals, with Gold unable to hold the 2013 floor of $1179. Gold and Silver saw net weekly declines of -4.8% and -6.1% respectively. Across the month, Gold and Silver slipped by -$37 (-3.1%) and -$0.86 (-5.1%) respectively.

GLD, weekly

SLV, weekly


*an update on the monthly cycles...

Gold, monthly

Silver, monthly

Silver has lead the way... and Gold has duly followed, losing the 2013 floor. The door is now wide open to the giant Gold $1000 threshold.. which looks likely to be tested before year end.

For me, the only issue is whether Gold will eventually see a further low after a bounce from around $1000. The $900/875 zone remains a viable multi-year floor by late 2015/early 2016.

Grave Implications for the miners

If you believe in $1000 Gold, then it bodes for a further 25/35% off most mining stocks in the relatively near term.