Friday 22 January 2016

Mediocre performance

Relative to the capital market upset this week, the precious metals really struggled. Gold is usually prime to catch a 'fear bid' on any market upset, but only brief significant this week. Gold and Silver saw net weekly gains of 0.9% and 1.1% respectively. The broader trend remains outright bearish.


GLD, weekly



SLV, weekly



Summary

Suffice to add... an bsolutely mediocre performance for Gold and Silver.

Despite the Dow being -500pts on Wednesday, Gold caught a fear bid of around $15, but naturally, as equities rebounded into the weekend, that gain largely melted away.

Price structure on the bigger weekly charts is yet another bear flag. That may take some weeks to complete, before further weakness in the spring/summer.
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*if correct, the related mining stocks will remain under pressure, regardless of any up waves in the broader equity market.