Friday 7 November 2014

Ending the week on a positive note

The broader downward trend in the precious metals continues, although Friday did see a very significant bounce. Gold and Silver settled with net daily gains of 2.8% and 2.0% respectively. Across the week, Gold and Silver saw net changes of +0.3% and -2.5% respectively.

GLD, weekly

SLV, weekly


*the closing weekly candle for Gold was a spike-floor candle, but this was not the case in Silver. Considering the break of the recent floor, I am going to dismiss this as a bounce.

Last Thursday the floor was broken on Gold - $1179, and with that break, the door is now wide open to the giant $1000 threshold.

Bounces are to be expected, and it is notable that Gold broke a 3 year low of $1137 on Wednesday.

Renewed weakness seems highly likely, with sub'1100s likely within a week or two.

The only issue is whether Gold test the giant $1000 threshold this side of Christmas.. or in early 2015.