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

Summary

*an update on the monthly cycles...

Gold, monthly

Silver, monthly

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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.