A second week lower

It was a second consecutive bearish week for the precious metals of Gold and Silver, with net weekly declines of -1.6% and -4.5% respectively. Near term outlook offers further weakness to price gap zones. With the USD super strong, mid term outlook remains bearish.


GLD, weekly

SLV, weekly

Summary

With the USD net higher this week by around 2.0% in the DXY 101s, it was not exactly a surprise to see Gold and Silver broadly lower.

Things turn VERY bearish if...  GLD <112 and SLV <$14

If either or both are seen, it would suggest a FULL retrace to the Dec'2015 lows. Further, it would re-open the original target of Gold $900/875, with Silver around $10.

... and if that happened, it'd bode extremely bearish for the related mining stocks, even if the main equity market continued into the sp'2300s and beyond.