Friday 20 November 2015

A fifth week lower

It was yet another bearish week for the precious metals. Gold and Silver saw net weekly declines of -0.4% and -0.7% respectively. Gold broke a new multi-year low of $1062, and remains on track to test the giant psy' level of $1000.. where price action is likely to get a little wild.

GLD, weekly

SLV, weekly


Little to add.

The broader downward trend continues.

Once Gold is around the $1000 threshold, price action is likely to get somewhat wild, as more gold bugs capitulate... but at the same time... a significant number of buyers will pile in.

Broadly... the $900/875 zone looks viable in late spring/summer 2016.

*If correct, the related mining stocks will remain broadly weak for another 6-9 months.